Japan’s AI gamble: Can technology offset the cost of an ageing society?

What the report says

Al Jazeera reports from Tokyo that Japan is increasingly testing artificial intelligence as a response to labour shortages caused by its ageing population. One example is taking place beneath Tokyo’s Otemachi business district, where Marunouchi Heat Supply Company operates a 30km heating and cooling pipeline network serving offices, commercial buildings and transport facilities. The company is using an AI system developed with Tokyo-based Preferred Networks, with the aim of moving toward more automated operations by 2027.

According to the report, the system, called PlantPilot, draws on past operating data and the knowledge of veteran engineers to analyse sensor readings and forecast conditions. Marunouchi officials told Al Jazeera the effort is intended to support skilled staff and preserve technical know-how as experienced workers retire, rather than remove humans from operational decisions.

The article frames the project as part of a broader national challenge. Japan faces labour constraints across sectors including manufacturing, logistics, energy and healthcare, while also trying to regain influence in a global technology race led by the United States and China. Al Jazeera notes that Japan has far fewer billion-dollar start-ups than those two countries, despite its reputation for advanced technology.

The report also highlights Sakana AI, a Tokyo start-up that has grown from about 50 to 150 employees in a year and is developing commercial AI products. Its chairman, Ren Ito, told Al Jazeera that Japan should not simply copy Silicon Valley, but should focus on applying AI to practical problems. The Japanese government is also backing the sector, with plans to mobilise about 370 trillion yen, or $2.3 trillion, in public and private investment by 2040 for AI, semiconductors and advanced research.