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Japan Can Still Compete in the AI Race, Says Former Digital Minister

TOKYO - Former Digital Minister Masaaki Taira, who oversees cybersecurity and artificial intelligence policy within the ruling Liberal Democratic Party, said Japan still has opportunities to compete in the rapidly evolving AI sector, despite the dominance of major U.S. and Chinese developers.

Speaking on the May 31st edition of BS TV Tokyo's "NIKKEI Sunday Salon," Taira argued that Japan should avoid direct competition with the creators of cutting-edge large language models such as those developed by American and Chinese technology giants.

"Trying to challenge the most advanced large-scale AI models head-on would be a path to defeat," Taira said. "Japan should focus on areas where it has strengths."

According to Taira, two fields offer particular promise. The first is physical AI, including robotics and AI foundation models designed for robots. While China currently leads in general-purpose AI-powered robotics, he said Japanese manufacturers remain well positioned to develop competitive technologies through cooperation between government and industry.

Japan's aging population and labor shortages could also create strong domestic demand for robotic solutions.

The second opportunity lies in highly specialized AI systems built on proprietary data that is not available on the public internet. Taira pointed to sectors such as manufacturing, healthcare, and nursing care, where Japanese companies possess extensive operational data that could be used to create industry-specific AI models.

"The internet's data has largely been consumed already," he said. "Japan has valuable datasets that are not online, and that gives us an advantage in developing highly specialized AI."

Taira acknowledged that Japan fell behind the United States during the internet revolution of the 1990s, but said AI presents a different opportunity. Rather than attempting to dominate every layer of the AI ecosystem, he suggested Japan should focus on strategic areas where it can create value.

He noted that Japan remains globally competitive in semiconductor manufacturing equipment and other critical technologies that support the AI supply chain. He also stressed the importance of maintaining a degree of AI sovereignty, while working with allies and partner companies rather than pursuing a completely domestic approach.

"Building everything domestically is unrealistic," Taira said. "The key is to cooperate with allies while maintaining control over essential technologies and decision-making."

The former minister also addressed growing concerns over advanced AI systems capable of identifying software vulnerabilities and assisting cyberattacks. He referenced recent developments in AI-powered cybersecurity tools and said governments and critical infrastructure operators must strengthen their defenses.

Japan has already launched projects aimed at protecting financial institutions and critical infrastructure from increasingly sophisticated AI-enabled threats, he said.

At the same time, Taira warned that society must remain cautious about the growing influence of AI on public opinion and individual decision-making.

He argued that AI literacy and education will become increasingly important as AI systems become more capable of shaping human behavior and influencing perceptions through personalized interactions.

"There is a risk of being mind-controlled without realizing it," Taira said. "People need to understand that AI can influence the way they think."

He also expressed concern about the use of AI in information warfare and online influence campaigns, particularly as AI-generated content becomes more prevalent across social media platforms.

"Mass media, academia, and every individual citizen will need a high level of literacy," he said. "AI education and public awareness are becoming extremely important."

On the economic front, Taira said Japan has attracted significant investment in AI-related infrastructure, including data centers. He attributed this partly to Japan's relatively flexible regulatory approach, which relies more heavily on guidelines than strict legislation.

Unlike the European Union, which adopted comprehensive AI regulations, Japan chose a more adaptable framework designed to keep pace with rapidly changing technology, he said.

As a result, major global technology companies have announced or expanded data center investments in Japan, helping strengthen the country's position in the AI economy.

Taira also highlighted Japan's strengths in content industries such as anime, gaming, music, and other forms of entertainment. Rather than viewing foreign digital platforms solely as competitors, he argued that Japanese content creators can use those platforms to expand their global reach.

"Japan's originality and creative industries are powerful assets," he said. "Instead of competing where we are weak, we should focus on expanding the value of what we already do well."

Looking ahead, Taira said AI, cybersecurity, and content industries are expected to remain among the government's priority sectors for investment and growth, adding that Japan's reputation as a trusted nation gives it unique advantages as countries navigate the next phase of the global AI race.

Source: テレ東BIZ

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