Japanese artificial intelligence will fall behind 2018 AI budget is less than 20% of China and the United States

In Japan's 2018 budget, the total allocation for artificial intelligence (AI) was 77.04 billion yen (approximately 4.6 billion yuan), which is less than 20% of what the U.S. and China have invested in AI. This significant funding gap puts Japan at a disadvantage in the global AI race. If this trend continues, Japan risks falling further behind its competitors. According to a Kyodo News report from February 25th, while Japan has increased its AI-related budget compared to previous years, it still lags far behind in both public and private investment. Although direct comparisons are difficult due to different data collection methods, recent figures from the Ministry of Education, Culture, Sports, Science and Technology reveal that the U.S. government spends over six times more on AI than Japan—about 500 billion yen—while China invests more than five times as much, at around 450 billion yen. Within Japan’s 2018 budget, the Ministry of Economy, Trade and Industry allocated 39.3 billion yen for next-generation AI chip development for robots, and the Ministry of Health, Labour and Welfare set aside 19.6 billion yen for medical data analysis and drug research. The Institute of Physical and Chemical Research received 11.5 billion yen for basic research and personnel training. Additionally, the Cabinet Office ensured a 55.5 billion yen budget for strategic R&D projects, some of which are focused on AI applications. The report emphasized that under tight financial conditions, the key to Japan’s future success in AI will be how effectively it can allocate limited resources to high-potential areas and attract private sector investment. Senior officials believe it is extremely challenging for Japan to compete directly with U.S. tech giants in the digital space. Instead, Japan's strategy focuses on improving efficiency in manufacturing and healthcare through AI innovation. By leveraging its strengths in these sectors, Japan hopes to carve out a unique position in the global AI landscape.

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