Japan is known for its established research & development (R&D) sector, manufacturing excellence and advancements in areas such as robotics. However, the country has found it challenging to fully leverage technologies to improve productivity, resulting in lagging digital competitiveness. This has prompted a nationwide shift towards becoming a digital-first nation. Digital transformation can unlock JPY67.7 trillion of annual economic value for Japan in 2030, provided businesses fully leverage technologies.
In particular, two critical enablers of growth stand out – artificial intelligence (AI) and cybersecurity. With targeted efforts in these areas, Japan can improve its digital readiness and better equip its businesses and citizens to deal with potential threats. Through increased uptake of AI technologies, at least JPY49.9 trillion of annual economic value can be achieved by Japan in 2030 in the form of productivity benefits. In addition, through a combination of government initiatives, cybersecurity investments and digital literacy programs, Japan stands to see a JPY3.8 trillion reduction in annual cybersecurity losses in 2030.
Google is already delivering significant benefits to Japanese businesses and households in the form of increased revenues and higher productivity. In 2022, Google’s AI-powered tools enabled businesses and households in the country to unlock JPY16.4 trillion in economic benefits, while its advertising tools supported 448,200 jobs in the local economy. Of the total economic benefits, JPY11.2 trillion was derived by businesses, while the remaining JPY5.2 trillion accrued to Japanese households.
Google also safeguards the privacy and security of Japanese users through its features, such as Google Safe Browsing and Google Play Protect, which keep them safe on a daily basis. An estimated JPY130.5 billion in potential losses are prevented annually through Gmail’s cybersecurity measures, which use AI to reduce phishing-related risks such as data breaches.