When most people think about artificial intelligence, the spotlight is on US and Chinese start-ups racing to build the next best model. On the surface, it is a battle of algorithms, powerful image generators and billion-dollar valuations.
Japan, however, has taken a quieter path. Its local AI scene is shaped by strict data privacy laws and a language barrier that means limited access to the open source tools and data sets that power much of today’s generative AI. As a result, Japan’s AI development has remained mostly behind the scenes, focused on business tools in manufacturing and automation.
But ironically, this global AI arms race is now fuelling new growth in some of Japan’s most overlooked sectors — not in software, but in the physical infrastructure that makes AI possible.