Japan to prepare AI action plan by year-end for economic growth
Japan’s ministers must set out a vision for AI use and regulatory and institutional reforms, with a policy package ordered to address construction labour shortages.
- Japan's government will create an AI action plan by the end of the year, viewing it as an essential tool to accelerate the nation's economic growth.
- The plan will establish a clear vision for AI use, identify priority sectors for investment, and detail the necessary regulatory and institutional reforms.
- AI is designated as one of 17 strategic sectors for public and private investment, with an intensive five-year promotion period scheduled to begin in April 2027.
Wider use of artificial intelligence is the goal of an action plan that Japan’s government will prepare by the end of 2026, Prime Minister Sanae Takaichi announced on Thursday (October 1).
Takaichi regards AI as a means of accelerating economic growth. Speaking at the Council for Japan’s Growth Strategy, she said: “The societal implementation of high-performance AI is essential for realising the government's growth strategy.”
For the relevant cabinet ministers, Takaichi’s instructions cover a clear vision for AI use and the regulatory and institutional reforms to accompany it.
Construction labour shortages could impede investment aimed at supporting growth. Takaichi ordered ministers to put together a policy package addressing the sector’s lack of workers.
Priority sectors and investment amounts will be identified in a growth strategy implementation programme, which council participants discussed at the meeting. The document is due at year-end, accompanying the government’s fiscal 2027 budget proposal.
AI and semiconductors fall within a group of 17 strategic sectors targeted for public and private investment promotion. Takaichi’s government will designate the five years beginning with the fiscal year starting in April 2027 as an intensive period for that effort.
For private companies, the government will explain budget measures covering more than one fiscal year to improve predictability.
Profitability and ripple effects will help determine the choice of projects in the priority sectors, where the government plans to identify investments expected to effectively raise the potential growth rate.
Separate management through a special account would depend on projects contributing to ensuring “autonomy of the socioeconomic structure”, “competitive advantage over other countries and regions” and “indispensability to the international community”.
The government plans that arrangement for sectors of particular importance to economic security.
[Copyright The Jiji Press, Ltd.]
