The Japanese government recently announced an ambitious investment blueprint: aiming to mobilize a total of over 370 trillion yen in public and private capital by the fiscal year 2040, across 17 strategic fields. Among these, physical AI alone accounts for 10.5 trillion yen, equivalent to about 442.2 billion yuan, becoming the core lever of this round of industrial layout.
Physical AI refers to intelligent systems capable of perceiving, deciding, and performing physical operations in real-world environments. The Japanese government has targeted key scenarios such as industrial automation, unmanned transportation, and infrastructure inspection, attempting to replace the shrinking labor force with machines. Faced with an aging population and increasingly severe labor shortages, the country is viewing physical AI as the ultimate solution to the productivity crisis.
Notably, the Japanese artificial intelligence startup Sakana AI has already begun exploring in relevant fields. These companies form the vanguard group of Japan's efforts to seize the high ground in physical AI. The injection of substantial funds will accelerate the transition from laboratory prototypes to industrial applications, providing strong momentum for robotics, autonomous driving, and smart infrastructure.
Safety and Growth in Tandem
While betting on AI, Japan has not overlooked potential risks. Just last Thursday, the country released a new draft AI policy, clearly emphasizing the need to strengthen threat management and safety assessment mechanisms. The goal directly addresses the unknown risks posed by high-performance artificial intelligence, aiming to establish a solid safety foundation while encouraging innovation.
From the grand plan of 370 trillion yen to the dedicated 442.2 billion yuan for physical AI, Japan is redefining the boundaries of "smart manufacturing" through a national strategy. Behind this bold move lies both the aspiration of an aging society for technological salvation and a significant bet in the global AI competition.
