Japan Officially Adopts First National Basic Plan for AI Development and Use
In a decisive move to reclaim its position as a global technology leader, the Japanese government has officially adopted its first "National Basic Plan for AI Development and Use." Approved by the Cabinet on February 6, 2026, the comprehensive strategy outlines a path to integrate artificial intelligence across all sectors of society while establishing a robust framework for safety and governance.
The plan, formulated by the Headquarters for the Promotion of a Digital Society, represents Japan’s most significant policy shift regarding AI to date. It explicitly acknowledges the nation's need to close the widening gap with AI superpowers like the United States and China. Under the banner of "Creating Reliable AI," the strategy prioritizes a balanced approach that aggressively promotes innovation—particularly in "Physical AI" and robotics—while expanding the capabilities of the Japan AI Safety Institute (J-AISI) to mitigate risks.
A Strategic Pivot: "The Most AI-Friendly Country"
The core philosophy of the new Basic Plan is to position Japan as "the most AI-friendly country in the world." Unlike the European Union’s regulation-heavy AI Act, Japan’s strategy leans towards "agile governance"—a soft-law approach designed to support development rather than restrict it.
The government has identified that while Japan lags in software-centric generative AI, it possesses a distinct competitive advantage in hardware integration. Consequently, the plan places a heavy emphasis on Physical AI—the convergence of advanced AI models with physical robotics and machinery. This focus is not merely industrial but existential, aiming to address the country's acute labor shortages and aging population through automated caregiving, logistics, and manufacturing solutions.
Core Pillars of the National Plan
The National Basic Plan is built upon four strategic pillars designed to accelerate adoption and ensure security:
1. Strengthening Domestic Development Capabilities
Japan aims to reduce its reliance on foreign AI models by fostering a sovereign AI ecosystem. The plan outlines a roadmap to support the development of domestic Foundation Models that reflect Japanese language, culture, and business practices.
- Investment: The government is coordinating a support scheme estimated at ¥1 trillion ($6.34 billion) over five years, starting in fiscal 2026, to bolster computational resources and research.
- Infrastructure: A key priority is the expansion of domestic data centers and the procurement of high-performance GPUs to secure the computational power necessary for training large-scale models.
2. Accelerating Public and Industrial Adoption
To drive demand, the government itself will act as a primary adopter. The plan mandates the rapid introduction of AI tools into central and local government operations to streamline administrative work and improve public services.
- SME Support: Recognizing that small and medium-sized enterprises (SMEs) often lag in digital transformation, the plan includes subsidies and technical support to help these businesses integrate AI solutions for productivity gains.
3. Human Resource Development and Education
Addressing the talent gap is a critical component of the strategy. The plan introduces a nationwide "AI Literacy" initiative.
- Curriculum Changes: Elementary and junior high schools will see updated curricula that introduce students to the basics of AI and data science early on.
- Reskilling: For the existing workforce, the government will fund recurrent education programs to retrain workers displaced by automation or those seeking to upgrade their skills for the AI economy.
4. Safety, Trust, and International Cooperation
While promoting innovation, the plan remains vigilant about risks such as disinformation, cyberattacks, and copyright infringement.
- J-AISI Expansion: The Japan AI Safety Institute will see a significant increase in staffing and budget. Its mandate is to develop evaluation standards for AI safety, conduct "red teaming" exercises, and collaborate with international counterparts like the US and UK AI Safety Institutes.
- Global Alignment: Japan reaffirms its commitment to the G7 Hiroshima AI Process, advocating for international interoperability of AI governance frameworks.
Global Comparison of AI Strategies
Japan’s approach carves out a middle ground between the strict regulatory environment of the EU and the market-driven, laissez-faire approach of the US. The following table illustrates these key differences:
| Feature | Japan (National Basic Plan) | European Union (AI Act) | United States (Executive Order) |
|---|---|---|
| Primary Philosophy | "AI-Friendly" Agile Governance | Risk-Based Regulation | Innovation with Safety Guardrails |
| Legal Status | Guidelines & Soft Law | Binding Legislation | Executive Actions & Agency Rules |
| Key Tech Focus | Physical AI & Robotics | Fundamental Rights Protection | GenAI & National Security |
| Safety Body | Japan AI Safety Institute (J-AISI) | AI Office | US AI Safety Institute (NIST) |
| Enforcement | Voluntary Compliance | Heavy Fines | Agency Oversight |
Industry Implications and Future Outlook
The adoption of this plan sends a strong signal to the global tech industry. For domestic startups, the emphasis on Physical AI opens up lucrative government contracts and research grants. Companies specializing in robotics, sensors, and edge computing are expected to be the primary beneficiaries of the new funding initiatives.
However, challenges remain. Critics argue that without binding regulations, the "agile governance" model may struggle to curb unethical AI use effectively. Furthermore, the goal of "catching up" in the generative AI race is ambitious given the entrenched dominance of US tech giants.
Looking ahead to 2030, the government has set benchmarks for success, including a specific target for AI adoption rates in the healthcare and manufacturing sectors. By anchoring its strategy in the real-world application of AI through robotics, Japan is betting that the next wave of AI innovation will happen not just on screens, but in the physical world.
As the plan moves from adoption to implementation, the coming fiscal year will be a litmus test for Japan's ability to execute this ambitious vision and transform its demographic challenges into technological opportunities.
