Japan’s Path Towards Meaningful AI Engagement
Where Are We Now, and Where Are We Headed?
We’ve been watching the Artificial intelligence (AI) landscape go through its growing pains across the Globe, but particularly in Japan. Its impossible to deny that these newly-released technologies are rapidly changing the landscape of various industries worldwide, transforming how businesses operate, and how governments provide services. Japan is no exception to this trend, as the nation actively seeks to harness the power of AI to boost its economy and maintain competitiveness on the world stage.
However, while Japan Inc. is monitoring the situation, it is also putting up a number of barriers to safely harnessing the power of AI.
In articles like Nippon.com’s ChatGPT Hype Slow to Reach Japan, Mainichi Shinbun’s coverage of legislator Kazuma Nakatani’s use of ChatGPT to address Prime Minister Fumio Kishida in a parliamentary session, and Nikkei’s story about major Japanese firms discouraging use of AI solutions, there appear to be considerable hurdles to getting the benefits of AI technology safely into the hands of Japan’s workers.
To help our readers get a better understand exactly what’s going on, we’ll summarize a few of our observations on the ground here in Japan, and then offer some insight on how things might develop from here.
AI in Japan: A Look at the Numbers
Japan’s domestic AI market is, according to Statista.com, a growing entity, with revenue in 2021 estimated at ¥277.2B (~US$2.08B) that is expected to grow by ~25% by 2024 to ~¥333B. However, while the nation's private sector has shown a keen interest in AI, Japan lags behind other countries in AI-related academic research and patent applications.
One reason for Japan's slow progress in AI research is the lack of government investment in the field. Despite Japan's government releasing Artificial Intelligence Strategy (2022), the country still falls short in terms of financial support for AI research and development.
In 2018, Japan had earmarked ¥77.08B (~US$577.8M) for R&D; in 2020, the US had plowed US$23.6B (~¥3.2T). While not synchronous comparisons, this gives an idea of where the two nations stand on their approach to AI technologies.
Japan's AI Strategy: A Comprehensive Approach
The Japanese government has documented its efforts to create a new AI strategy that aims to foster AI talent, improve the country's AI capabilities, and strengthen collaboration between the public and private sectors. The strategy includes the establishment of a new AI research agency, which is intended to bridge the gap between academia and industry.
There is notable the importance placed on addressing ethical concerns and promoting transparency in AI systems. To this end, Japan has introduced a set of AI ethical guidelines, which it plans to share with other countries to help shape global norms around AI.
Limiting AI Use: SoftBank and Other Japanese Firms
Despite the modest investment in AI technologies by the Japanese government, SoftBank and other major Japanese firms are moving to limit the use of AI, specifically ChatGPT. This decision comes amid concerns about potential misuse and the spread of misinformation. Although ChatGPT has been praised for its wide range of applications and ability to generate human-like text, its immense capabilities have raised questions about the potential consequences of widespread AI adoption.
Worries over malicious activity via ChatGPT and other AI platforms is at the crux of Japan’s hesitancy to engage in a more animated manner. While this is a well-intentioned and careful approach to experimenting with novel technologies, we’d argue that it may be overly cautious and as such eliminating potential paths to progress before they have a chance to surface.
Arguing for Meaningful AI Engagement in Japan
Given the current state of AI in Japan and the broader global trends, the country must take a proactive approach to ensure that it remains at the forefront of AI innovation. The following steps should be considered to foster meaningful AI engagement in Japan:
Increase Government Investment in AI R&D
To bridge the gap in AI-related academic research and patent applications, the Japanese government must significantly increase investment in AI research and development. This can be achieved by allocating more funds to universities, research institutions, and AI-focused startups, as well as incentivizing private sector investment in AI technologies.
Strengthen Collaboration Between Academia and Industry
Japan must facilitate stronger collaboration between academic institutions and private sector companies. The establishment of the new AI research agency is a step in the right direction. However, further efforts should be made to create an ecosystem where researchers and businesses can collaborate effectively to develop and commercialize cutting-edge AI technologies.
Foster AI Talent Through Education and Training
Japan needs to invest in nurturing the next generation of AI talent by incorporating AI education into its school curriculums and providing retraining opportunities for workers in industries that are likely to be disrupted by AI advancements. This will ensure that Japan has a skilled workforce capable