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# Back into the Spotlight

![](https://static.time.com/v3/assets/bltea6093859af6183b/bltff45231d55a2c6da/6a952b31448ea667c0595dd0/Page_1_Image_1_v2.png?branch=production&width=1200&quality=75&auto=webp&crop=3:2)

#### **As the global AI race accelerates, Japan’s tech firms are thriving.**

When SoftBank launched the 2016 purchase of chipmaker ARM, the largest-ever overseas ​​acquisition​​​​ ​​ by a Japanese company, president Masayoshi Son declared that “We are facing the biggest paradigm shift in the history of mankind.​” Renewed optimism in the AI and tech space was much needed for Japan’s economy, after decades of stagnation during the “lost decades” when real GDP grew by just 0.9% annually, and the working-age population had already fallen by more than 10 million from its peak in 1995.

A decade later, this optimism has only grown. While Japan continues to grapple with a weakening yen and a rapidly shrinking population, its technology sector is flourishing. Headlines often focus on Silicon Valley or Shenzhen in the race to build large language models, however, Japan has carved out a different advantage: providing the technologies and infrastructure that make the AI era possible. Japan produces nearly 40% of the world’s industrial robots, and plans to deploy 10 million AI-equipped robots by 2040 as part of a broader push into physical AI, led by state-backed firm Noetra. To see how this transformation is unfolding, we spoke with various Japanese leaders to learn about AI’s impact on their industries.

_Hidenori Nakazawa_ is the founder and president of Getworks, a company pioneering a containerized approach to data center construction. Having worked in the industry since the early days of internet infrastructure, he sees AI as a major catalyst for demand.  
**What have been some of the biggest milestones for Japan’s tech sector over the past 30 years?**  
“While the general public accesses AI services through the cloud, researchers developing large language models and generative AI increasingly require on-premises GPU servers. Demand for domestic GPU infrastructure is growing significantly,” he said.

_Takaaki Utsunomiya_ is the president of precision​​ ​​fastener​​-​​maker Utsunomiya Rashi. Its products are critical components in industries ranging from electric vehicles to aerospace and defense.  
**How do you view AI as a potential growth driver?**  
“Many of our potential customers are involved in areas such as data centers and semiconductor production equipment. Our aim is to build relationships and grow together with this ecosystem​​,​​”​ he said.​

_Takuji Yamamoto_ is the president of Shinwa Controls, whose cooling technologies are central ​to ​AI data center construction. An 8-GPU server generates enough heat for a small apartment, making advanced thermal management essential.  
**What are some of your key growth drivers for the future?**  
“AI data centers have become important growth areas. Efficient heat management is critical in these facilities, and our expertise allows us to provide solutions where traditional heat management companies were not involved​​,​​”​ he said.​

_Naotaka Fujii_ is the president of Digital Hollywood University, one of Japan’s leading institutions for digital media and 3D education. As AI becomes embedded in creative work, he believes education must evolve alongside it.  
**What role can AI play in the creative process?**  
“AI helps raise the minimum level of creative achievement. With AI, more people are able to reach a certain standard of creative expression that previously required much more technical ability. This means all students can become eligible artists using AI​​,​​”​ he said.​​

_Kenji Yamada_ is the chief AI officer of NTT-AT, a company bringing advanced technologies into practical use. He believes Japan’s reputation for reliability is a key strength as trust becomes important in AI adoption. The 2024 Edelman Trust Barometer found that while 76% of respondents trusted technology companies, only 50% trusted AI itself.  
**How do you believe Japan’s AI industry is perceived overseas?**  
“Japan’s advantage lies in its social infrastructure and strong manufacturing base. Our industries cannot simply stop, regardless of what happens. They require continuous, safe operation, which means we place a high priority on security and reliability​​,​​”​ he said.​

![](https://static.time.com/v3/assets/bltea6093859af6183b/blta72271dcd0df47a8/6a952c7b22b3da3d0d75d471/Page_1_Image_1_v2.png?branch=production&width=1200&quality=75&auto=webp)

_Dr. Nakao Iwata_ is the president of Fujita Health University and a distinguished psychiatrist. He believes AI will play an increasingly important role in medicine and is actively integrating it into both the university and its teaching hospital.  
**What impact do you see AI as having on the health profession?**  
“By linking health records with AI, we can make workflows more efficient. I use a smartphone to record conversations with patients, which is connected to AI​,​” he said​​. ​​“​​If I ask the AI to summarize a long discussion, it can process tens of thousands of words quickly. The AI also has access to treatment guidelines, so if I ask it about a specific method, it can provide relevant recommendations.” 

Hideo Misawa is the president of Eucalia Inc., a healthcare technology firm aiming to improve efficiency and governance across hospitals and clinics in Japan.   
**How do you ensure that efficiency gains do not come at the expense of patient trust?**   
"AI is evolving rapidly and can now even replicate elements of human interaction, but we believe it will not replace the human role entirely. In healthcare, safety must always remain the top priority. Efficiency and even aspects of the human touch can be optimized, but safety can never be compromised," he said. 

Kenshin Ikeda is the president of Kyodo International, a niche trading company active in the engineering field. Ikeda sees AI and cutting-edge technologies as having far-reaching potential, including in Japan's rural sector.   
**Are there any recent projects that best reflect Kyodo’s strengths today?**   
“One example is an IoT system for livestock farming. Traditionally, farmers have relied on experience to determine the optimal timing for breeding, based on factors such as feeding levels and the animal’s physical condition. We have translated this knowledge into data using sensors, enabling farmers to make more informed decisions,” he said. 

Hiroshi Ishiguro and Shogo Nishiguchi are co-Founders of Avita, Inc., an ambitious startup at the intersection of generative AI, robotics, and specifically, avatar technology. Led by Ishiguro as CEO and Nishiguchi as COO, they are banking on “giving AI a human face” through avatars.   
**What is the biggest misconception people still have about the relationship between humans and machines?**   
“One of the biggest misconceptions is that AI is somehow an enemy of humanity. I do not believe that is true. What we are trying to show is that AI and robots can become a part of human life. In Japan, robots have been viewed as friends from the very beginning. We do not have the same tendency to separate robots and AI from human society. I believe we need to understand that AI is not our enemy and that humans and AI can coexist, just as we do today with computers and smartphones,” he said. 

Hideo Tsurumaki is the president of FOMM Corporation, a mobility startup focused on producing ultra-compact electric vehicles. With Tsurumaki’s background in engineering, known as a pioneer in the micro-EV world, FOMM aims to succeed where others have failed both in terms of affordability and practicality.   
**Mobility as a Service (MaaS), IoT-based predictive maintenance and improved EV infrastructure are beginning to define the automotive sector. Do you see your future in niche mobility segments, or in broader markets?**   
“The FOMM One is the smallest EV available in Japan, even smaller than light pickup trucks. These days, we receive many inquiries from Southeast Asian countries such as Vietnam, Cambodia, Sri Lanka, India, Thailand, and so on, to electrify tricycles like the tuk-tuk,” he said. 

Taku Hirabayashi is the president and CEO of Japan System Techniques (JAST), one of the country’s longest-established independent IT service providers. JAST focuses on mission-critical IT infrastructure for enterprises, and is readily embracing new advancements.   
**What makes Japan a trusted and competitive partner in today's increasingly digital global economy?**   
“In Japan, software was largely viewed as a tool to support hardware and manufacturing, with a strong emphasis on made-to-order solutions tailored to individual customers. As a result, I believe Japan has lagged behind in globalization and the development of standardized software products. On the other hand, because we have become highly skilled at accommodating individual client needs, I would argue that Japanese software companies have achieved a very high level of quality,” he said. 

Kenjiro Murakami is the president of Spectee Inc., a leading AI startup involved in the disaster prevention space. With the mission “Visualize Crises,” Spectee aims to use data to save lives in times of disaster, supporting governments and businesses across the country.ountry.   
**Could you tell us more about your approach to countering misleading information, and what you see as the biggest challenges still left to solve?**   
“We always have issues surrounding fake information and scams, and while AI can provide useful analysis in these areas, there are still some challenges at play. In cases of disasters, it is very important to ensure that information is 100% accurate, as a wrong decision could be very costly. We have human checkers to ensure that mistakes are not made, and information is accountable,” he said. 

Ryosuke Seko is the CHRO for Chuo Kaihatsu Corporation, one of Japan’s oldest and most respected engineering consultancies. With a pedigree in geotechnical investigation and environmental consulting, the firm is making inroads into new areas thanks to the power of sensors and cutting-edge AI.   
**What are your expectations for Japan’s future as an exporter of disaster mitigation technologies?**   
“Our core pillars are geological surveys and “geological DX”. The geological space is not seen visibly, so surveys often rely on people’s experience and individual skills. In order to visualize the space, we developed a 3D model with a micro-topographic relief visualization map. Every country has a need for ground surveys, so demand is increasing for Japan’s skills in this area. When we deal with overseas stakeholders, there is higher accountability due to disaster risks and stricter budgets, which is why we believe data-driven ground investigation is something we can offer across various countries,” he said.

![](https://static.time.com/v3/assets/bltea6093859af6183b/bltffc1927fcd4ed5ed/6a9537beb008784484426983/page_2_image_3.png?branch=production&width=1200&quality=75&auto=webp)

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