Japan is expanding the use of artificial intelligence to tackle labour shortages caused by its ageing population while strengthening its position in the global technology sector. Companies across industries are adopting AI to improve productivity, preserve technical expertise, and support long term economic growth. One example is Marunouchi Heat Supply Company in Tokyo, which has partnered with Preferred Networks to deploy an AI powered system that manages its underground heating and cooling network. The technology analyses operational data and provides recommendations that help engineers improve efficiency while preserving valuable knowledge from experienced workers. The company aims to move towards more automated operations by 2027. Japan is also encouraging the growth of AI startups such as Sakana AI, which is developing practical AI applications rather than competing directly with larger global AI model developers. Backed by government plans to mobilise around 370 trillion yen in public and private investment by 2040, the country is focusing on artificial intelligence, semiconductors, and advanced research to boost innovation. By combining AI with its strengths in manufacturing, healthcare, and energy, Japan hopes to build a sustainable model for economic resilience and future technological leadership.
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