Japanese Optimism Amidst Global AI Concerns
While pessimism about artificial intelligence (AI) looms globally, with fears of widespread job losses, increased inequality, and even lethal machines, Japan exudes a marked optimism. The country believes that AI will help overcome its severe labor shortage, enhance people’s daily lives, and regain global technological leadership.
Public Perception of AI in Japan
According to an Ipsos survey, only a quarter of Japanese citizens are concerned about AI’s impact on their lives—the lowest proportion among 32 countries surveyed. Only one in ten Japanese believe AI will worsen the future, significantly lower than over a third of Americans’ pessimism regarding this technology.
Japan’s Long History with Machines
This divergence can be attributed to several factors, but Japan’s long history working with machines might play a crucial role. Japanese people easily envision AI-powered applications and devices that assist humans rather than replace them. With Japan’s shrinking workforce—30% of Japanese are 65 years or older—the labor-saving potential of AI will be vital to boost productivity and save critical industries.
Japan’s AI Strategy
Considering this future, my company, Rakuten, has invested in developing large and small language models tailored to Japanese language and culture. We leverage AI to transform critical services, like mobile networks. Instead of traditional networks limited by providers and hardware-focused, Rakuten Mobile’s network enables flexible systems. Operators can combine and adapt components while minimizing energy consumption.
Favorable Regulatory Environment
Japan has adopted a strategy prioritizing innovative AI governance, without strict rules or penalties that could hinder AI adoption or experimentation. The Japanese AI Promotion Law, passed last year, fosters close cooperation between the public and private sectors. As noted in a 2024 technical report, Japan aims to become “the most AI-friendly country” globally.
Contrasting Approaches
This contrasts with the European Union’s risk-mitigation focus, reflected in their 2024 AI Act and data access restrictions for AI developers. Other AI innovators lag behind Japan in creating conducive environments, with some prioritizing social stability and state-directed innovation while others face lengthy legal battles between data owners and AI developers.
Japan’s Favorable AI Policies
Japan’s optimism translates into favorable AI policies. Japanese courts interpret copyright law to allow using third-party copyrighted works for training AI models, attracting leading US AI companies like OpenAI to collaborate with Japanese firms such as Rakuten.
Ensuring Safe AI Development
Japan recognizes the importance of safe AI development. Under Japan’s G7 presidency, the Hiroshima AI Process was initiated to promote “safe, reliable, and trustworthy AI worldwide” and guide organizations using advanced AI systems. However, the resulting framework avoids restrictive regulations or threats of fines; instead, it helps businesses design effective risk management mechanisms and encourages transparency in information exchange and reporting.
Challenges for Japan’s AI Leadership
Despite the favorable AI stance’s early successes, Japan must overcome some hurdles. Firstly, Japan should encourage broader AI tool adoption: currently, only half of Japanese companies use generative AI, compared to over 90% in the US, China, and Germany.
Japan must also avoid fixating on small-scale AI adoption at the expense of overlooking the bigger picture—the fundamental importance of developing our global AI leaders. Strengthening energy and cloud infrastructure is essential, investing in clean energy production and expediting permits for data centers. Japan should shun counterproductive notions of “digital sovereignty” and instead encourage Japanese innovators to collaborate with pioneering US and other countries’ firms.
Japan’s Path to Global AI Leadership
With its highly skilled population, favorable regulatory environment, and openness to AI, Japan is well-positioned to emerge as a global AI leader. Now, the government and business community must translate these strengths into tangible results.
About the Author
Hiroshi Mikitani is the founder, president, and CEO of Rakuten Group.
Copyright: Project Syndicate, 1995 – 2026
www.project-syndicate.org
