OSAKA - Business leaders gathered at the 64th Kansai Business Seminar held at the Kyoto International Conference Center on February 5th and 6th to debate pressing issues facing the regional economy—including AI adoption, the legacy of the Osaka–Kansai Expo, and the use of foreign talent—offering a snapshot of where Kansai stands and where it may be headed.
The Osaka–Kansai Expo scheduled for 2025 is projected to attract around 25.57 million visitors and generate a maximum economic surplus of about 37 billion yen, and participants said its significance extends beyond economic impact to the sharing of values such as respect for life, diversity and emotional well-being, as well as a vision of a future society where advanced technologies are integrated into everyday life. Leaders also noted that the Expo helped renew civic pride and unity in the region, reinforcing the need for Kansai to use technology to address social challenges and build a more prosperous economy in the years ahead.
Labor shortages caused by Japan’s declining birthrate and aging population were another key theme, with companies increasingly hiring foreign workers. However, speakers stressed that simply recruiting foreign staff due to a lack of Japanese workers is not enough to ensure retention, as about 28% of foreign employees reportedly leave within a year. Companies such as Iwatani said deeper engagement with local communities can help foreign workers feel accepted as members of the region, while Daikin Industries emphasized diversity management as essential to competing globally, noting that about 90% of its workforce is overseas. Participants summarized that embracing diversity can generate innovation, likening it to mixing paints to create new colors.
Discussions also turned to maintaining Kansai’s appeal to visitors after the Expo. Speakers highlighted the need for coordinated urban development across districts to sustain tourism and encourage exploration beyond major hubs. Around Namba and Shinsekai, efforts are underway to expand development from single points to broader areas, linking attractions and transportation networks to create walkable zones. One initiative involves repurposing vacant buildings and shopping arcades into “distributed hotels,” in which an entire neighborhood functions as lodging.
In Higashi-Osaka, for example, a shopping street has been transformed into a hotel where guest rooms are renovated former storefronts scattered across the district, allowing visitors to stay within the community and experience its atmosphere. Such distributed hotel models have spread across Kansai and into other parts of Japan, offering benefits for travelers, local businesses and residents while revitalizing declining commercial areas. Similar projects are being tested in rural regions, including a railway-line-wide hotel concept developed by East Japan Railway that links accommodations, restaurants and activities along underused lines to boost local economies.
AI emerged as one of the seminar’s central topics. Participants noted that AI is shifting from a tool for efficiency toward a driver of growth and that investment in AI infrastructure and social implementation will be critical. Companies in Kansai are exploring AI to address labor shortages, including automated transport systems and digital technologies to support services in aging communities, though high safety standards pose challenges for full-scale deployment in Japan.
At an AI exhibition in Osaka, about 60 domestic firms showcased technologies ranging from content creation tools to autonomous service agents. Attention is increasingly focused on “AI agents” capable of acting independently rather than merely responding to instructions. Yet global rankings place Japan ninth in AI competitiveness, with China in second place behind the United States. Field reporting from China showed widespread use of robotics and autonomous vehicles, including driverless taxis equipped with dozens of sensors and already operating in the thousands.
Despite lagging investment compared with the United States and China, speakers said Kansai has strengths in manufacturing and robotics that could support new forms of “physical AI,” integrating software intelligence with hardware such as robots and industrial equipment. A new data center opened by KDDI in Sakai is expected to support high-speed AI processing for uses including drug development, while local leaders argued that Japan’s strengths in materials, machinery and craftsmanship could enable distinctive applications of AI.
The seminar also highlighted sports and tourism initiatives as drivers of regional revitalization. The World Masters Games, to be held in Kansai, are expected to generate economic effects exceeding 140 billion yen, while a growing number of local governments are using events such as rogaining—a navigation sport originating in Australia—to attract visitors and stimulate spending. Participants move between checkpoints across entire towns, often visiting restaurants and landmarks along the way, creating revenue for local businesses and promoting regional attractions.
As Kansai looks beyond the Expo and toward a future shaped by demographic change and technological disruption, business leaders emphasized the importance of global outreach, collaboration between industry, government and academia, and investment in young innovators. The seminar concluded with a shared sense that the region must harness its manufacturing heritage, embrace diversity and deploy AI strategically if it is to turn current challenges into opportunities and shape a new phase of economic growth.
Source: Television OSAKA NEWS
