Japan Allocates 10.5 Trillion Yen to Physical AI by 2040 to Address Labor Shortage

According to Nikkei Asia, Japan's government announced recently that it plans to allocate approximately 10.5 trillion yen (about 442.3 billion yuan) to the physical AI sector as part of a larger investment strategy targeting over 370 trillion yen in public-private partnerships across 17 strategic sectors by fiscal year 2040.

The allocation aims to deploy physical AI technology in industrial automation, autonomous transportation, and infrastructure inspection to address labor shortages stemming from an aging population and workforce imbalance, thereby enhancing overall productivity.