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Why Japan Isn’t Leading the AI LLM Race (But Is Still a Major AI Power)

E.D. Gibson
3 min readFeb 12, 2025

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When people think of artificial intelligence, they often picture large language models (LLMs) like OpenAI’s ChatGPT, Google’s Gemini, or Anthropic’s Claude. The AI race is largely dominated by the U.S. and China, with European nations also making strides. But what about Japan?

Japan has long been a leader in robotics and industrial automation, yet it seems less visible in the generative AI revolution. Is Japan lagging behind in AI, or is it simply prioritizing a different path? The answer is more nuanced than it may seem.

Japan’s AI Strategy: A Different Approach

Unlike the U.S. and China, Japan has historically focused on hardware-driven AI rather than software-based models like LLMs. This is because AI in Japan is deeply intertwined with its long-standing expertise in robotics, automation, and industrial AI.

1. A Legacy of Robotics Over LLMs

Japan has dominated robotics for decades. Companies like Honda (ASIMO), SoftBank (Pepper), and Fanuc have pioneered humanoid and industrial robots that use AI for automation. Instead of prioritizing conversational AI, Japan has applied AI to smart factories, elder care robots, and autonomous systems.

Even in service sectors, AI chatbots in Japan are more tailored toward customer service automation rather than general-purpose LLMs.

2. Language and Market Limitations

A key reason why Japan isn’t as aggressive in LLMs is the language barrier. Most LLMs are trained primarily on English data, making it easier for American companies to build and scale them. Japan’s smaller population and market size (125 million people) compared to the U.S. (330 million) or China (1.4 billion) also means there’s less economic incentive to develop high-cost, large-scale AI models.

That said, Japanese companies like NTT and RIKEN are working on Japan-specific LLMs, but they lack the funding and global reach of OpenAI or Google.

3. Ethical & Regulatory Caution

Japan tends to be more conservative when it comes to AI ethics and regulation. The government and corporations prioritize safety, privacy, and job security, slowing down the aggressive deployment of AI seen in the U.S.

For example, while the U.S. has a “move fast and break things” startup culture, Japan takes a careful and deliberate approach to AI deployment, focusing on business applications rather than broad, general AI.

Is Japan Still Investing in AI? Absolutely.

While Japan may not be a leader in LLMs, it is still a major AI powerhouse in other areas:

1. Japanese-Language AI Models

Firms like Fujitsu and NTT are developing Japanese-focused LLMs to bridge the language gap. The Japanese government is also investing in AI supercomputers to accelerate local AI research.

2. AI in Industry & Automation

Japan is integrating AI into manufacturing, finance, healthcare, and transportation rather than chasing general-purpose LLMs. Examples include:

  • Toyota’s AI-driven autonomous driving technology
  • Hitachi’s AI-powered factory automation systems
  • SoftBank’s AI chatbots for customer service

3. AI Supercomputing & Research

Japan is home to Fugaku, one of the world’s fastest supercomputers, which is being used for AI research, medical simulations, and climate modeling.

Conclusion: Japan’s AI Strategy Is Just Different

Japan isn’t ignoring AI — it’s just prioritizing AI applications where it has existing strengths. While the U.S. and China battle for dominance in general-purpose LLMs, Japan is ensuring AI benefits industries where it already leads, such as robotics, automation, and industry-specific AI.

So while you may not see Japan leading the LLM race, don’t count it out in the AI revolution. The future of AI isn’t just about chatbots — it’s also about smart machines, automation, and AI-enhanced industries — and Japan is still a key player in that game.

What do you think? Should Japan invest more in LLMs, or is its focus on industrial AI the right move? Share your thoughts in the comments!

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E.D. Gibson
E.D. Gibson

Written by E.D. Gibson

A GenXer and islander who tries to seek the crossroads between philosophy and science to positively inspire and motivate others as well as myself.

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