Japan Finalizes Inaugural AI Basic Plan, Set for Cabinet Approval

Japan Unveils Landmark AI Strategy

On Friday, December 19, 2025, Japan's government finalized its inaugural Artificial Intelligence Basic Plan, a comprehensive strategy aimed at propelling the nation to the forefront of global AI development and utilization. The plan, compiled by the AI Strategic Headquarters and chaired by Prime Minister Sanae Takaichi, is anticipated to receive Cabinet approval as early as Tuesday, December 23, 2025. Prime Minister Takaichi underscored the plan's core values of strategic development and reliability, stating, 'Now is the time to turn the tables with public-private collaboration.'

Addressing Japan's AI Landscape

The new Basic Plan emerges as Japan seeks to overcome its current lag in AI adoption compared to other major economies. A government white paper from July 2024 indicated that only 26.7 percent of Japanese individuals had used generative AI, significantly lower than 68.8 percent in the United States and 81.2 percent in China. To counter this, the government aims to increase individual AI usage to 80 percent. The foundation for this ambitious plan was laid with the enactment of the AI Promotion Act in May 2025, which fully came into effect on September 1, 2025, establishing AI as a national priority.

Pillars of Development and Investment

The AI Basic Plan is structured around four fundamental policies designed to balance technological innovation with robust risk management:

• Accelerating the promotion of AI utilization: Government institutions and municipalities are tasked with leading efforts to improve work efficiency through AI.
• Strategically strengthening AI development capabilities: This includes leveraging Japan's strength in 'high-quality data' and building up development capacity.
• Taking the lead in related governance: Japan aims to establish guidelines for appropriate AI use in line with international standards.
• Pursuing continuous transformation toward an AI society: Emphasizing 'collaboration' between humans and AI and continuous transformation of social structures.

A significant financial commitment underpins these goals, with the government planning to invest ¥1 trillion (approximately $6.4 billion) into AI development and implementation, with an aim to attract substantial private sector investment.

Key Initiatives and Future Outlook

Several concrete initiatives are outlined within the plan to achieve its objectives:

• The Digital Agency's generative AI platform, 'Gennai,' will be fully introduced across government agencies in May 2026 to support bureaucratic tasks.
• The staff at the Japan AI Safety Institute, a government-affiliated body, will be doubled from its current 30 members to enhance AI safety assessments.
• The plan also calls for the development of essential infrastructure, including data centers, electricity, and communication networks, through public-private cooperation.
• Consideration will be given to civil liability frameworks for AI use and issues such as copyright infringement.

Prime Minister Takaichi has expressed a strong desire to make Japan 'the easiest country in the world to develop and utilize AI.' The government's proactive stance, balancing innovation with risk management, aims to establish Japan as a trusted nexus in the evolving global AI landscape.