The Economic Impact of Generative AI: The Future of Work in Japan

The Economic Impact of Generative AI: The Future of Work in Japan

Artificial Intelligence (AI) holds much promise for Japan, with the Japanese Government’s AI Strategic Council recognising the country’s high degree of affinity with generative AI, partly due to its high levels of research and technology, and the potential that generative AI holds to address issues such as the decline in the working age population and need for digitalisation. Recently, the Liberal Democratic Party (LDP) released its AI White Paper recognising the need to formulate a new national strategy for AI which acknowledges this growing evolution and social implementation of large-scale language AI models where a new era of AI is envisioned.

Against this background, technology industry leaders have noted that AI is at an inflection point, with powerful new models like generative AI being introduced, and innovative new applications increasingly being used across society and capturing the imaginations of consumers. Generative AI has opened the door to more possibilities and is expected to play a role in tasks requiring creativity, curiosity, and looking at information differently. Therefore, the potential of generative AI lies in its ability to enable people to achieve greater creativity, effectiveness, and efficiency in their work.

This report seeks to contribute to this discussion by providing early insights and raising awareness of the economic opportunities that generative AI can create, and what it means for local industries and workforce readiness.

This study estimates that generative AI can potentially unlock JPY 148.7 trillion (USD 1.1 trillion) of productive capacity in Japan, equivalent to a quarter of GDP in 2022.2 Japan has an opportunity to better position its businesses and workers to unlock the potential of generative AI, as well as manage emerging risks. Policymakers will need to ensure that they have a clear national vision for AI, and that it focuses on preparing its workforce and establishing an enabling policy environment for AI adoption, including to answer the question “what is required to achieve the aspirations of a brighter future enabled by generative AI?”

Download the reports below:

Download the report in Japanese

Download the report in English

 

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