Tokyo: The Internal Affairs and Communications Ministry in Japan is set to launch a groundbreaking initiative in fiscal 2027, designed to foster the adoption of artificial intelligence (AI) among midsize and core regional companies. This move aims to alleviate labor shortages plaguing businesses outside Japan’s major urban centers.
According to Emirates News Agency, the initiative, known as ‘Regional AX,’ will see the ministry subsidizing initial costs for companies that utilize AI to leverage local resources. The government plans to request funding for this program in its fiscal 2027 budget. The initiative’s potential applications are vast, ranging from training AI with historical data on local climates and soil conditions to aid farmers, to using AI with cameras to preserve and transfer traditional craftsmanship skills.
The initiative also extends its support to restaurants that use AI-powered reservation systems to boost business by serving local products. This effort builds upon the ministry’s Local 10,000 Project, started in fiscal 2012, which provides financial backing in collaboration with regional banks and local governments to create businesses centered around local resources. AI assistance will become a new category within this existing framework.
Thus far, the Local 10,000 Project has approved 675 ventures across 397 municipalities, including establishments focusing on regional specialties and new product development based on traditional crafts. Looking ahead, the ministry plans to increase the number of ventures approved for AI support from fiscal 2027 onward.
Japan’s regional communities possess unique business opportunities characterized by specialized expertise and resources not found in major cities. However, they also face challenges such as population decline, partially due to the concentration of economic activities in Tokyo. By integrating AI into these regions, the ministry hopes to revitalize local economies and has already begun connecting AI with local industries.
Moreover, the government intends to incorporate the Regional AX concept into its ‘regional future strategy,’ set to be finalized this summer, marking a concerted effort to promote AI adoption across regional economies in Japan.
