Japan aims to deploy 10 million AI robots by 2040 to address labor shortage

Japan has elevated digital transformation to a core national competitiveness strategy. A GSMA report warns of a "2025 digital cliff" that could cost up to ¥12 trillion annually if progress stalls, while the 2024 digital services deficit reached ¥6.8 trillion. ICT now accounts for roughly 10 % of Japan’s GDP, and the government is investing in 5G, fiber, data centres and submarine cables under a 2030 infrastructure plan, ranking third among 20 Asia‑Pacific economies in the GSMA Digital Nations Index.

In parallel, the Ministry of Economy, Trade and Industry released a revised AI‑Robotics Strategy targeting the deployment of 10 million physical‑AI robots across 18 key sectors by 2040. The plan centres on the newly created consortium Noetra, backed by SoftBank, NEC, Honda and Sony and more than 40 domestic firms. Funding of up to ¥1 trillion over five years, including a ¥387 billion budget for FY2026, will enable development of a multimodal AI model that can perceive and act in the physical world, aiming to mitigate Japan’s severe aging‑related labour shortage and later export the technology abroad.