Japan targets $65.1 billion for physical AI across 17 sectors by fiscal 2040 to counter a shrinking workforce

Japan on June 19 outlined a plan to direct 10.5 trillion yen ($65.1 billion) in combined public and private funding into physical artificial intelligence across 17 strategic sectors by fiscal 2040, according to Nikkei Asia. The initiative is intended to address labor shortages tied to Japan’s shrinking workforce, including in manufacturing, logistics, healthcare, and eldercare. It is also the fifth major policy move under Prime Minister Sanae Takaichi’s government within four days.