Japan Unveils New AI Strategy to Boost R&D and Address US-China Gap

According to Lianhe Zaobao citing Nikkei, the Japanese government on Tuesday (July 14) released a new artificial intelligence (AI) strategic plan aimed at strengthening risk management and promoting independent AI development, as the US and China rapidly advance in the technology. The plan, the second version since Prime Minister Shigeru Ishiba's administration took office last year, seeks to expand investment frameworks and advance "AI transformation" (AX). Japan targets raising investment in "vertical AI" (healthcare and industrial sectors) to JPY 23.1 trillion by 2040, and in "physical AI" (autonomous driving and robotics) to JPY 10.5 trillion. Japan ranks 14th globally in annual private-sector AI investment at USD 1.11 billion, far behind the US (USD 285.9 billion) and China (USD 12.41 billion). The government designated AI and quantum technology as priority areas among 17 strategic fields, and plans to support frontier research at universities and companies through expanded research grants. To cultivate talent, Japan will establish a system to systematically send researchers and graduate students abroad, aiming to produce at least 20,000 doctoral graduates annually in related fields and dispatch 30,000 researchers overseas by 2030. Lawmaker Masaaki Taira, who is drafting AI safety rules for the Liberal Democratic Party, said AI has become an extremely important issue for national security and economic development, and that government involvement in its use must be strengthened to avoid over-reliance on specific countries or companies, necessitating independent AI development. The plan also prioritizes AI applications in the financial sector and critical industries such as oil, gas, and power companies, including enhanced infrastructure inspections, risk assessment systems, and cybersecurity capabilities.