Japan Looks to Catch Up on Generative AI: Private Sector and Government Take Action

As generative artificial intelligence (AI) gains traction worldwide, Japanese companies are starting to develop and incorporate the technology into their businesses. The government is also working on crafting a national AI strategy to boost Japan’s competitiveness in this field. While global tech giants have already introduced their AI-powered chatbots, Japanese firms have been relatively absent. However, companies like SoftBank and Line are now making their presence felt, aiming to catch up with international counterparts. Additionally, the Japanese government is taking steps to formulate an AI strategy and address the risks and opportunities associated with the technology.

Private Sector Efforts

SoftBank, in collaboration with Line, is working on developing a Japanese equivalent of OpenAI’s ChatGPT. The alliance between the two companies aims to challenge global AI leaders. SoftBank has already launched a company dedicated to developing generative AI applications, with a team of 1,000 engineers working on this project. Line, as Japan’s most popular messaging app provider, is also investing more in AI and developing its own large language model (LLM) AI. Similarly, NTT plans to develop its own LLM and make it available to other businesses. CyberAgent has released its own LLM specialized in the Japanese language and culture, catering to the unique linguistic and cultural aspects of the country.

Government Initiatives

The Japanese government, under Prime Minister Fumio Kishida, has established a panel of experts to draft a national AI strategy. The panel, chaired by renowned AI expert Yutaka Matsuo, will focus on AI utilization, development, and risk assessment. Prime Minister Kishida is actively engaging with AI experts and young entrepreneurs to discuss the strengths, weaknesses, and societal impact of AI. Recognizing Japan’s declining population, the participants emphasized the need to leverage AI to enhance productivity and called for collaboration among the public, private, and academic sectors.

Challenges and Considerations

While bolstering AI development is a priority, Japan also needs to address associated risks. Potential challenges include job displacement and the spread of fake news. How Japan tackles these risks and whether it adopts strict or flexible regulations remain uncertain. Similar uncertainties exist worldwide, with the European Union (EU) taking steps to regulate AI. The EU’s proposed AI bill employs a risk-based approach, categorizing AI into different levels of risk. Unacceptable risks, such as subliminal or manipulative systems and social-scoring platforms based on personal behavior and background, are prohibited under the proposed law.

Japanese companies are actively working to catch up with the global trend of generative AI. SoftBank, Line, NTT, and CyberAgent are among the firms developing their own AI models and chatbot tools. The Japanese government is also taking proactive measures, forming a panel of experts to draft a national AI strategy. Japan aims to capitalize on AI to enhance productivity in the face of a declining population. However, striking a balance between development and risk mitigation remains a challenge. As different regions adopt varying approaches to AI regulation, Japan will need to find its own path to maximize the benefits while minimizing potential drawbacks.