Ever since OpenAI made ChatGPT available to the public in November 2022, generative artificial intelligence (AI) has attracted immense public attention as one of the most promising and possibly also disruptive technologies of the 21st century. This is also the case in Japan, where major corporations such as Fujitsu, NEC, and NTT have developed their own large language models (LLMs). Fujitsu’s Takane model, for instance, is geared towards the nuances of the Japanese language and supposed to handle confidential data while complying with the laws and regulations of specific industries, such as finance and healthcare. Survey data on the
indicates that a majority of people are concerned about insufficient laws and rules, and Japan has been very vocal about this topic, as evidenced by the facilitation of a key framework agreement on AI regulation that was endorsed by the G7 Hiroshima Summit in 2023.
The generative AI market in Japan
While American and Chinese companies often dominate international headlines, both the government and the private sector in Japan are engaged in developing generative AI technology and promoting its use in professional and private settings. The Ministry of Economy, Trade and Industry (METI) and the New Energy and Industrial Technology Development Organization (NEDO), for instance, launched the Generative AI Accelerator Challenge (GENIAC) in February 2024, a project that is meant to help companies secure computational resources for the development of foundation models. The
domestic expenditure on generative AI amounted to 101.6 billion Japanese yen in 2024 and is expected to multiply within the next few years. Generative AI is not only a significant growth factor for the AI systems market but also exerts a positive influence on various complemental technologies, such as
data centers and
cloud services, which play a pivotal role in reducing costs and enabling flexibility.
Generative AI usage in Japanese businesses
Survey figures indicate that the
share of people who used generative AI at work varies strongly depending on industry affiliation. People employed at software and information services companies tend to be more familiar with the technology than those in the service or construction industry.
Common objectives of user companies include the improvement of business efficiency, automation, and cost reduction. It is likely that generative AI will be more widely adopted across industries as LLMs diversify and become more affordable. Next to the successful application of reliable AI agents, which can handle tasks in a more autonomous manner than AI assistants and advisors, the further spread of generative AI will also depend on the proper training of the workforce. One major step in this direction has already been undertaken by Microsoft, which announced in April 2024 that it planned to provide AI skills to more than three million people in Japan.
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