Japan Digitizes Its Defense Strategy with AI and Underwater Drones
Plans to enhance defense capabilities through technological investments amid regional tensions.
1Technology-driven defense budget transformation
Japan's Defense Ministry has requested an 8.9 trillion yen ($55.6 billion) budget for fiscal year 2027, with significant portions allocated to next-gen technologies like AI, underwater attack drones, and hypersonic missiles. Under its five-year defense strategy launched in 2022, Japan aims to spend 2% of GDP on defense to counter China's growing military presence, marking a strategic shift in regional security dynamics.
2Unmanned systems take center stage
The ministry is investing in unmanned weapon systems to improve cost efficiency and minimize casualties. From 2027 onward, underwater and surface-launched attack drones will be deployed. These systems, designed to work with long-range cruise missiles and UAVs, will also compensate for Japan's declining military personnel numbers due to its aging population.
3Challenges in domestic production
Japan's commercial drone market reliance on Chinese imports poses challenges for defense industrialization. Experts highlight technical and financial hurdles in developing fully domestic drones. The ministry plans public-private partnerships for mass production of low-cost unmanned systems, seeking to reduce dependence on foreign technology.
4AI-powered command and control
The Defense Ministry is developing an integrated AI platform called 'AI orchestrator' to accelerate decision-making processes. This system will combine multiple AI technologies for battlefield assessment and target selection, potentially blending U.S.-sourced solutions with domestic developments. The initiative reflects Japan's focus on modern warfare requirements.
5Government-backed defense industry
Japan plans to establish state-owned, contractor-operated weapons factories to revitalize its defense industry. Production will be outsourced to private firms like Mitsubishi Heavy Industries, aiming to reverse the exodus of dozens of companies that left the sector due to low profitability in recent decades.
6Hypersonic arms race
Developing submarine-launched hypersonic missiles is among Japan's top priorities to enhance counterstrike capabilities. These systems will integrate with existing long-range missiles and interceptors deployed in southwestern Japan. The ministry will also build a high-security 'Defense Cloud' infrastructure for emergency communications.
7China's strong objections
Beijing has criticized Japan's defense spending increase as 'new militarism,' escalating tensions in the region. The Taiwan issue remains a flashpoint, with military competition between the two nations intensifying. Japan cites Ukraine's drone warfare as justification for its military modernization.
8Shifting regional security balance
Japan's defense transformation is reshaping power dynamics in the Asia-Pacific. While technological modernization enhances deterrence against both China and North Korea, the arms race implications for regional stability are being closely monitored by the international community.
Original article: Fortune — Japonya Savunma Stratejisini Dijitalleştiriyor