Japan is advancing its AI-augmented robotics agenda through increased government funding and policy initiatives aimed at accelerating industrial automation and workforce adaptation. In fiscal 2024, the Ministry of Economy, Trade and Industry (METI) allocated over ¥32 billion to support research in AI robotics and to fortify the industrial ecosystem. The funding targets enhanced robotics competitiveness and supports autonomous robot development for advanced semiconductor manufacturing, including Rapidus's 2-nanometer project.
A revised national robotics strategy, the first update in a decade, is scheduled for completion by March 2026. This strategy will provide a 10-year roadmap for AI robotics adoption across industries. METI is facilitating this process through an inter-ministerial study group to establish sector-specific roll-out plans. The ministry also supports demand-side measures such as public procurement targets in infrastructure, construction, and healthcare to encourage early adoption.
On February 6, 2026, the Cabinet adopted Japan's first National Basic Plan for AI Development and Use. The plan includes a five-year, ¥1 trillion (US $6.34 billion) support scheme starting in fiscal 2026, focusing on "Physical AI," which combines AI with robotics to address labor shortages caused by demographic shifts. The initiative also funds workforce reskilling through recurrent education programs.
Japan's broader AI strategy encompasses METI's revised AI Action Plan, part of "AI Strategy 2025," with ¥4 trillion earmarked for AI-related investment through 2030. This includes subsidies for semiconductor factories such as TSMC's Kumamoto facility, expanding the AI Bridging Cloud Infrastructure (ABCI) supercomputer, supporting domestic development of foundational AI models, and creating innovation hubs across sectors like manufacturing and logistics.
Background
Japan is contending with severe labor shortages and an aging population, with projections indicating over one-third of residents will be age 65 or older by 2030. To address these issues, AI-enabled robots are supplementing the workforce in manufacturing, healthcare, logistics, and agriculture. Japan's existing leadership in the global industrial robot market is bolstered by efforts to integrate AI into hardware. The National Basic Plan is the country's first comprehensive AI policy, intended to finance technology development, expand computing capabilities, and promote sustainable technology adoption while maintaining safety standards through organizations such as the Japan AI Safety Institute (J-AISI).
Details
- METI's ¥32 billion allocation in fiscal 2024 is designed to bolster AI robotics R&D and strengthen supply chains for components like semiconductors and actuators. This supports developments associated with Rapidus's 2-nanometer chip production. The updated robotics strategy, due in March 2026, incorporates sector-specific roadmaps and sets public procurement targets to drive deployment. Implementation is coordinated via an inter-ministerial committee.
- The Cabinet-approved National Basic Plan initiates a five-year, ¥1 trillion support package for domestic development of AI foundation models and Physical AI integration, along with recurrent education programs for upskilling workers.
- Further investments under METI's "AI Strategy 2025" include ¥4 trillion through 2030 across AI sectors, subsidies for semiconductor production such as TSMC's Kumamoto fabrication plant, expansion of the ABCI supercomputing platform, establishment of AI innovation hubs in manufacturing, logistics, agriculture, and healthcare, and reinforcement of safety and governance via J-AISI.
Outlook
Japan is set to finalize its AI Robotics Strategy by March 2026, introducing sector-specific roadmaps and Centers of Excellence. The government aims to position the country as a leader in Physical AI by aligning public procurement with industry requirements and strengthening domestic AI and robotics ecosystems through coordinated public-private collaboration.
