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Japan’s AI gamble: Can technology offset the cost of an ageing society?

Japan’s AI gamble: Can technology offset the cost of an ageing society?

Summary

Japan is using artificial intelligence (AI) to help manage infrastructure and address workforce shortages caused by an ageing population. The country aims to combine human skills with AI to improve efficiency and preserve expert knowledge while also trying to grow its position in the global AI technology market.

Key Facts

  • Marunouchi Heat Supply Company in Tokyo is using an AI system called PlantPilot to manage heating and cooling pipelines.
  • PlantPilot analyzes sensor data and uses engineer knowledge to make recommendations for better operations.
  • Japan faces a shrinking workforce as many skilled workers retire, creating a need for AI to help pass on expertise.
  • Unlike some countries, Japan sees AI as a tool to support human workers, not replace them.
  • Japan has fewer successful AI start-ups compared to the US and China, with only about eight companies valued over $1 billion.
  • Sakana AI is a fast-growing Japanese AI start-up working on practical AI products.
  • Japanese AI leaders believe success will come from solving real problems and creating new innovation methods, not copying American companies.
  • Developing advanced AI requires large investments, which Japan plans to address by focusing on applied AI rather than competing on scale.
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