Bridging the Gap: Japan's Robotics Expertise Meets the AI Revolution
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Strong potential for success with generative AI
Japanese companies have traditionally been the leaders in robot production, exports and industrial use. Domestically, robot integration in industrial use has been especially popular and easy to execute due to the shrinking workforce given the ageing dynamic of Japanese society and lack of immigration. This has made Japanese businesses and workers more willing to invest in robots in order to drive up productivity, total output and GDP growth. Firms such as FANUC, Kawasaki Heavy Industries, Sony and the Yaskawa Electric Corporation led the way in robotic development during Japan’s economic rise.
Japan’s success in robotics and involvement in the earlier AI booms sets up a strong potential for its success with the latest buzz of generative AI. Firms will remain open to enabling new technologies due to population constraint and easy access to chips. About 60% of Japanese companies have net cash with very low levels of gearing, which will also allow for investments in AI-related research and development, in contrast to international competitors who may face a high interest rate environment. In addition, there is ample tech and AI-skilled labour supply in Japan, given its prior success in robotics and other tech fields and constant collaboration with global tech companies.
Robots + AI could spell productivity leaps and a new era of Japanese manufacturing
Japan’s greatest potential could be in bringing together its success in robotics with new AI offerings to create a completely new technology that can change the face of the global economy. Artificial intelligence applied to robotics offers a new way for robots (software) to execute commands or tasks given to them. This means robots could become more independent and be able to learn, understand, solve, reason and react, while being less dependent on human commands. For industrials, this could mean a robot navigating its way around a busy warehouse, adapting itself to change routes in case of unforeseen events, or a robot understanding supply chains and streamlining inventory, while also analysing data for any likely hiccups.
This marriage of robots and AI could bring leaps in productivity gains as well as enhancements in labour and global trade, which could lead to a new era of economic prowess for Japan. Japanese companies in a variety of sectors are embracing AI. SoftBank’s mobile unit is developing a Japanese equivalent of ChatGPT. CyberAgent announced that it has released its own large language model (LLM) with which companies can create AI chatbot tools. NTT also plans to develop its own LLM this fiscal year and provide it to other businesses. Industrial conglomerate Hitachi has set up an internal body called the Generative AI Center to facilitate the use of generative AI to improve the productivity of its employees and also plans to provide consulting services on AI for other companies.
