JAPAN

ARTIFICIAL INTELLIGENCE

The Government of Japan established the Strategic Council for AI Technology in April 2016 to accelerate the development of AI technology and promote the utilisation and application of AI. The council acts as a control tower to manage five national research and development agencies: the Center for Information and Neural Networks, RIKEN Center for Advanced Intelligence Project, Artificial Intelligence Research Center, Japan Science and Technology Agency, and the New Energy and Industrial Technology Development Organization (NEDO).

Japan aims to become one of the leading countries in AI. As part of its efforts, the Strategic Council presented the Industrialization Roadmap Projected by Fusion of AI and other related Technologies (Industrialization Roadmap) to foster expertise-sharing among the private sector, government, and academia. The roadmap identifies four focus areas for the development of AI application: roductivity; health, medical care, and welfare; mobility; and, information security.

In 2019, to gain competitiveness in the AI technology arena that is dominated by the US and China, Japan finalised its renewed strategy on AI. The strategy outlines the objectives and measures to develop an ecosystem that can utilise and apply AI technology to solve challenges that Japan faces and to contribute to achieving the SDGs.

The 2019 strategy is founded on the principles of a human-centric AI society, that includes dignity, diversity and inclusion, and sustainability. The principles were developed by the Council for Social Principles of Human-centric AI established by the Cabinet Office of Prime Minister Shinzo Abe. The council members consist of multistakeholder experts in the industry, academia, and government. The council focuses on objectives, such as clearing institutional and political barriers, building a multi-sectoral network for problem solving, supporting research and development, developing an ecosystem that harnesses AI technology, and creating a governance system for ethics at both national and international levels.

In January 2020, NEDO organised the NEDO AI & ROBOT NEXT Symposium in Tokyo, which showcased the accomplishments made through the organisation’s research and development (R&D) activities. It also focused on two ongoing AI-related projects: the Development of Core Technologies for Next-Generation AI and Robotics and the Realisation of Smart Society by Applying Artificial Intelligence Technologies. Both of the projects promote R&D of AI technology, social implementation, and demonstrations that utilise sensor technologies developed for data acquisition and AI modules.

Japan takes part in discussions at the GGE on LAWS at multilateral fora. In 2019, Japan submitted a working paper to the group, stating that international humanitarian law must be upheld in developing and operating all weapons systems, including LAWS. The country also emphasised that it has no plan to develop fully autonomous lethal weapon systems, however, it clarified that it intends to develop and operate autonomous weapon systems with meaningful human control in place.

The Ministry of Defence of Japan is promoting initiatives of automation using AI and other technologies to ensure its technological superiority in strategically important areas of equipment, by making focused investments in important technology including AI. The annual white paper published by the ministry in 2019 emphasised the rapidly changing nature of conflict due to the advancement of technology.

Japan is also contributing to AI-related discussions within G7 and the OECD (whose principles of human-centric AI society the country endorsed).

5G

The Ministry of Internal Affairs and Communications of Japan (MIC) announced that it aims to start offering 5G network connectivity in 2020. In its white paper on information and communications technology (ICT), it highlighted potential threats associated with the introduction of 5G networks and the proliferation of IoT products, for instance, vulnerabilities of connected cars, home energy management, and medical care to hacking. Furthermore, the paper stated that it seeks to partner with other major countries in order to develop international standards on 5G and discuss its frequency.

In February 2020, the MIC hosted the 5G International Symposium 2020 to present the findings from the comprehensive test demonstration that the ministry has been carrying out since 2017. As part of Japan’s efforts to achieve Society 5.0, in which people can solve social problems through implementing innovations and utilising digital technologies, Prime Minister Shizo Abe announced in January 2020 that the government would support 5G and post-5G telecommunications innovations through tax measures and budgets.

In December 2019, the Trilateral Cyber Security Commission, founded by the Sasakawa Peace Foundation USA to improve the cybersecurity policy of the USA, Japan, and their allies in Europe, published a paper titled ‘National Security Strategy for 5G: Findings & Recommendations on Meeting the 5G Challenge’.  The paper put forward the recommendation to these governments to establish a strong domestic review mechanism to review 5G network procurement from foreign suppliers, while pointing out that Huawei and ZTE have been supporting Chinese foreign policy goals by engaging in activities such as evasion of international sanctions. Shortly after the publication of the paper,  the Japanese government was reported to have excluded Chinese technology companies Huawei Technologies and ZTE from public procurement due to national security concerns. The decision came after a series of countries, including the USA, Australia, and New Zealand,  blocked these firms from taking part in 5G mobile network infrastructure build-outs.

QUANTUM COMPUTING

The Japanese government has measures in place to strengthen the research and development activities of quantum computing technology. In 2018, the Ministry of Economy, Trade, and Industry of Japan (METI) announced a budget of JPY 10,000,000,000 (equivalent of approximately US$9,191,700) for quantum computing development.

Moreover in 2017, the Ministry of Education, Culture, Sports, Science, and Technology of Japan (MEXT) launched a programme called the Quantum Leap (Q-LEAP) Flagship Program to further support research and development on next generation computing systems. This programme aims to foster human resources by facilitating dialogues for young Japanese researchers to interact with researchers overseas, as well as ensuring that these students have a career path to apply their expertise. In January 2020, Prime Minister Shinzo Abe announced that soon,an innovation hub where leading researchers and corporations in quantum computing from both Japan and overseas can collaborate will be established.

Apart from the government initiative, in December 2019, IBM and the University of Tokyo announced a partnership, the Japan-IBM Quantum Partnership, to advance quantum computing and make it practical to be utilised in industry, science, and society. The objectives of the partnership include: getting universities across Japan to participate in accelerating quantum computing research and education, engaging industry and furthering practical research in applications, and developing and marketising quantum computing system hardware to build future quantum machines.

Interstate cooperation is at play as well. In December 2019, the United States and Japan signed the Tokyo Statement on Quantum Cooperation to advance quantum information science and technology. The cooperation is underpinned by the shared values, such as freedom of inquiry, merit-based competition, openness, and transparency while ensuring the promotion of protection of intellectual property.

BLOCKCHAIN

The Japanese cryptocurrency market has been growing exponentially since 2018. Mirroring the growth, Japan was among the first countries to have passed a bill that defines virtual currency as a legal term, and requires an agency to register as a virtual currency exchange service provider in order to offer virtual currency exchange services to customers residing in Japan.

In response to the hacking attack against Coincheck, Inc. in January 2018, which resulted in the loss of approximately US$530 million worth of cryptocurrencies, the Financial Services Agency of Japan (FSA) established a Study Group on Virtual Currency Exchange Services. The Study Group published a report in December 2018, concluding that flexibility in regulatory measures is important in order to adjust to environmental changes in the future. The group expressed hesitation with regard to designing regulatory measures at the moment due to uncertainty, noting that ‘it may not be reasonably appropriate to determine regulatory measures in advance without evaluating the trends of virtual currency activities in the future.’ It also emphasised the need for international cooperation by pointing out that virtual currency trading has been widely carried out cross-borderly.

Japan has been working with other countries to develop policy and necessary regulations to prepare for and take advantage of blockchain technology and the challenges that come with it.

The Bank of Japan is a member of the central bank groups created in the Bank for International Settlements (BIS) to share experiences while assessing the potential cases of central bank digital currency (CBDC) in home jurisdictions. The group, that includes the Bank of England, the European Central Bank, the Bank of Canada, the Sveriges Riksbank, and the Swiss National Bank, will assess CBDC use cases, cross-border interoperability, and the knowledge-sharing on emerging technologies.

The Council of Investment in Future, established by the Office of the Prime Minister and his cabinet, discussed the utilisation and application of blockchain at their 28th meeting in June 2019. The participants of the meeting consist of the prime minister, his cabinet members, business leaders, and academia. The respective ministers announced to have approved a total of six demonstration plans to apply blockchain technology not only to the financial sector, but also to supply chains, health care, and the environment (i.e. clean energy).

AUGMENTED/VIRTUAL REALITY

Japan presented the Innovation 25 Strategy in 2007, looking ahead to the next 25 years and presenting policies to foster innovation within the Japanese society. In the interim report, the Minister of State for Innovation Sanae Takaichi highlighted that virtual reality will enable Japanese citizens to experience the culture and historical heritage outside of Japan, and vice versa.

Associated with Japan’s adoption of 5G technology, Japan’s virtual and augmented reality market is expected to grow from JPY14.1 billion in 2017 to JPY211.1 billion by 2020, according to a report published by the Japan External Trade Organization (JETRO). Accordingly, there are several research initiatives undertaken by prominent Japanese institutions. For instance, the University of Tokyo was granted JPY626 million from the government to research and develop VR/AR technologies that could enhance human capabilities through collaborating with Sony.

The government supports private-sector led R&D activities in VR/AR technologies, for instance by introducing a subsidy scheme and setting up trade associations. The Ministry of Economy, Trade, and Industry (METI) offers subsidies for the costs of creating advanced technologies (including VR/AR) to promote products, services, or tourism of rural regions of Japan. Moreover, the VR Consortium and the Virtual Reality Society were established to provide researchers with platforms to exchange ideas and experience, publish academic journals, etc.

ROBOTICS

The Office of Economy Revitalisation, established within the Office of the Prime Minister and His Cabinet, published the ‘Robot Strategy’ in February 2015. Given Japan’s competitiveness in robotics technology, rapidly aging society, and other countries’ growing capabilities in robotics, the Japanese government perceives robotics as an effective tool to solve social challenges by revolutionalising robotics technologies and systems. Japan aims to become a hub of robotics innovations by developing an ecosystem that can support the creation of innovative robots. The proposed action plans include the following: to promote the collaboration between industry, academia, and public entities; to propose cross-border projects, such as a joint development of robots for natural disasters between Japan and the United States; and, standardisation efforts at the international level to strengthen rules on data security.

The Cabinet Office of Japan established the Moonshot Research & Development Program to promote research and development for bold and innovative ideas that will create disruptive innovation originated in Japan. One of the goals in the Moonshot programme is to develop robots that autonomously learn, adapt to the environment, evolve  in terms of intelligence, and co-live with humans by 2050. The robotics-related sub-goals to achieve by 2030 are: to develop AI-enabled robots that can autonomously function under human supervision within specific contexts; and, AI-enabled robots that 90% of people would not feel uneasy about  co-living with, under a regulated set of rules. Considering the probable shortfall of workforce in the future, the government envisions to utilise and apply robotic technologies to achieve industrial revolution without any human intervention, automation of science, and exploration into space.

The Ministry of Economy, Trade and Industry (METI) of Japan issued a strategy report on robotics in July 2019. The utilisation and application of robotics in the elderly care was highlighted as a key to enhance Japan’s competitiveness by presenting ways to integrate robots into social welfare. The report encouraged the manufacturers to produce simple, affordable, and mass-producible elderly care robots to respond to the needs, accelerate positive user experiences, and reduce the cost.

In the report, METI also underlined the need of creating standards on safety and quality to promote demonstrations and introductions of the technology. At the international level, METI plans to contribute to international standards setting for the safety of elderly-care robotics, as it did for the adoption of the standards of safety requirements for personal care robots (ISO13482) at the International Organization for Standardization (ISO).

To accelerate the robotics application into a wide-range of industry, METI’s report stated that the ministry plans to prepare and train up to 30 000 robotics system integrators by 2020. Prior to this, the Factory Automation& Robot System Integrator Association was founded in 2018 to serve as a factory automation and robotics industry hub for networking.

In the military and defence sectorS, Japan is increasingly investing in robotics research and development (R&D), as part of its overall goal to ‘strengthen stand-off defense capability through measures such as comprehensive research and development of related technologies’ (as noted in the country’s ‘National Defense Program Guidelines’). The government’s Acquisition, Technology and Logistics Agency is the main body responsible for R&D activities, and it is reportedly developing technologies such as wearable robots for soldiers and multipurpose autonomous robot vehicles.

INTERNET OF THINGS

In line with the Society 5.0 strategy, Japan plans to integrate IoT and related technologies into ‘every industry and social life’ and use it to ‘resolve various social challenges’. Developing smart cities is an important part of this goal, and there are now over 200 smart city projects completed or ongoing in over 150 areas throughout the country.

The government supports the development and deployment of smart city solutions through initiatives such as the Smart Mobility Challenge. Launched in April 2019 by the Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure, Transport and Tourism, the initiative aims to ‘support regional cities and areas in taking on implementation of new mobility services in society’. The government is also supporting smart community initiatives, in particular through the Ministry of Economy, Trade and Industry and the Agency for Natural Resources and Energy.

Public-private partnerships have an important role in the roll-out of smart city solutions. For instance, the Smart City Institute Japan brings together public, private, and social sector organisations to conduct research and ‘promote best practices of smart cities and encourage further enrichment of new smart city ideas’.

Japan has also launched the ‘Connected Industries initiative’, with the goal of supporting industries in ‘creating new added value and providing solutions to societal challenges by connecting a variety of data, technologies, people and organizations in the midst of the global rise of IoT and AI’.

In 2016, the National Center of Incident Readiness and Strategy for Cybersecurity published a ‘General Framework for Secure IoT Systems’. The main goal of the framework is to ‘contribute to promoting the industry’s active involvement in the development of secure IoT systems and create an environment in which IoT systems users can utilize the systems with a condition that security and safety is assured’.

In the military and defence sectors, Japan is increasingly using drones and other unmanned aerial vehicles (UAV), for instance, to maintain surveillance activities in areas within the country where a physical presence can be difficult to maintain. This is in line with the Medium Term Defense Program (2019-2023), which notes that the Ministry of Defence will ‘actively promote initiatives towards automation through such means as the introduction of artificial intelligence to data processing and decision makings regarding unit operation, the procurement of UAVs and R&D of unmanned surface vehicles (USV) and [unmanned underwater vehicles] UUVs’.