News On Japan

Will AI Strengthen the Kansai Economy?

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

News On Japan
POPULAR NEWS

Record rainfall caused 19 rivers to overflow across Fukui Prefecture, flooding roads and homes, triggering landslides and temporarily forcing authorities to issue the highest-level heavy rain emergency warning from early Sunday morning.

Drones were used to deliver food and daily necessities to an isolated mountain community in Himi City, Toyama Prefecture, on August 30 after torrential rain triggered a landslide that cut off road access, while volunteers continued flood recovery work in neighboring Ishikawa Prefecture.

Two typhoons east of Japan were moving northward on August 30, with Typhoon No. 23 (Banlan) overtaking Typhoon No. 22 (Artau), although neither storm is expected to have a direct impact on Japan.

A 9-minute, 13-second drone video filmed inside Aeon Mall Kumamoto two days after the deadly explosion has provided a detailed view of the destruction, showing collapsed ceilings, heavy dust and widespread damage that may have affected between one-third and nearly half of the shopping center.

Strong Typhoon No. 18 was moving northwest through the East China Sea on the night of August 26, gradually pulling away from Okinawa and the Amami Islands as lingering rain, strong winds and high waves were expected to ease. As of 9 p.m. on August 26, the typhoon was over waters north-northwest of Kume Island and moving northwest.

MEDIA CHANNELS
         

MORE Web3 NEWS

Major pharmaceutical company Tsumura and four other companies began full-scale operations on August 26 at a joint data collection center designed to develop "physical AI," technology that enables artificial intelligence to autonomously control robots in manufacturing and other workplaces.

SoftBank Group announced on August 24 that it will issue 1 trillion yen in unsecured corporate bonds for individual investors, in what is set to be its largest such offering.

Japanese companies and venture investors are stepping up efforts to commercialize technologies that could transform shipping and recruitment, with Mitsui O.S.K. Lines pursuing fully autonomous operation of giant cargo vessels while startup Calaris develops an interactive AI interviewer designed to uncover abilities that conventional job applications may miss.

Japanese online publishing platform note is using artificial intelligence to review its management meetings and analyze company-wide activity as it prepares for a future in which AI increasingly determines what information, products and services people discover online.

Artificial intelligence is rapidly transforming cyber warfare by enabling faster, automated and continuous attacks, raising concerns that governments and companies may struggle to detect and stop intrusions before serious damage occurs.

Running a business in Japan at present involves constantly coping with evolving threats. The Japan cybersecurity market is growing rapidly, and this growth speaks for itself.

The creation of the ERC-20 standard allowed the blockchain ecosystem to scale through the deployment of fungible tokens, where every asset is completely identical and interchangeable with another.

RTP is one of the clearest mathematical indicators available when Kiwi players assess an online casino game.