Deep beneath Tokyo’s Otemachi financial district, a quiet experiment is underway. Marunouchi Heat Supply Company, which runs a 30-kilometer network of heating and cooling pipes under the city’s busiest business hub, has turned to artificial intelligence to keep its aging infrastructure running smoothly. The AI system, called PlantPilot and built with local firm Preferred Networks, learns from decades of sensor data and veteran engineers’ know-how, then suggests adjustments to boost efficiency. The company aims to automate much of this work by 2027.
For Hidetaka Yagi, the assistant general manager overseeing the project, the stakes are personal. “Our biggest challenge is securing skilled personnel,” he said. “As experienced workers retire, we risk losing valuable operational knowledge. AI can help preserve that expertise and pass it on.” That sentiment echoes across Japan, where a shrinking, aging population has created labor shortages in manufacturing, logistics, energy, and healthcare. Unlike in some countries where automation sparks fears of job loss, Japan increasingly treats AI as a collaborator—a way to extend human skills rather than replace them.
But Japan’s AI ambitions face a stark reality check. Despite its reputation as a tech powerhouse, the country has produced just eight unicorn startups, compared with roughly 690 in the United States and 160 in China. Ren Ito, chairman of the Tokyo-based startup Sakana AI, argues that copying Silicon Valley is a losing bet. “If we try to compete with American companies in exactly the same way, we will not succeed,” he said. Instead, he believes Japan’s edge lies in applying AI to concrete, local problems—like managing aging infrastructure or optimizing energy grids. The government has pledged 370 trillion yen ($2.3 trillion) in public and private investment by 2040, targeting AI, semiconductors, and advanced research. Yet policymakers acknowledge that money alone won’t close the gap; the country must also rebuild its research institutions and cultivate the next generation of engineers and scientists. AI may not solve Japan’s demographic crisis on its own, but it’s becoming an essential tool for staying competitive in a rapidly changing world.
Source: Al Jazeera