Takaichi says government will compile action plan to spread the use of AI

Prime Minister Sanae Takaichi said Thursday that the government will draw up an action plan by the end of the year to promote the use of artificial intelligence, which she regards as an accelerator for economic growth.

“The societal implementation of high-performance AI is essential for realizing the government’s growth strategy,” Takaichi said at a meeting of the Council for Japan’s Growth Strategy.

She instructed relevant Cabinet ministers to compile a concrete vision for AI utilization, as well as regulatory and institutional reforms.

At the meeting, participants discussed a growth strategy implementation program to be compiled at year-end alongside the government’s budget proposal for fiscal 2027.

Takaichi said her government will designate the five years starting next April as an intensive period to promote public and private investment in 17 strategic sectors, including AI and semiconductors, and include priority sectors and investment amounts in the program.

In the priority sectors, projects that are expected to effectively boost the potential growth rate will be identified based on factors such as profitability and ripple effects.

To provide predictability for private-sector companies, the government will also clarify budgetary measures spanning multiple fiscal years.

The government plans to manage sectors of particular importance to economic security separately in a special account, contingent on projects that contribute to ensuring “autonomy of the socioeconomic structure,” “competitive advantage over other countries and regions” and “indispensability to the international community.”

Takaichi also instructed Cabinet ministers to compile a policy package aimed at resolving labor shortages in the construction sector, which could hinder growth-oriented investment.