Japan is running out of workers. Its population declined for a 14th straight year in 2024; its working-age population is projected to shrink by nearly 15 million over the next two decades; and a 2024 Reuters/Nikkei survey found that labor shortages are the primary force pushing Japanese firms toward automation and AI adoption.
Last month, the Ministry of Economy, Trade, and Industry said it was looking to build a domestic physical AI sector, with hopes of holding 30% of the global market by 2040. The idea is to employ robots in logistics warehouses, on factory floors, and inside data centers—where they’re not taking people’s jobs, but filling the ones no one wants.
