But analysts warn that question marks remain over worker shortages and whether Japan can generate enough electricity for energy-hungry AI data centers. Japanese tech investor SoftBank and U.S. computing giant Nvidia last week unveiled ambitious proposals to build an "AI grid" across the nation. Japan's investments are an attempt "to remain competitive in that space, but also... to stay prepared around this geopolitical tension that we know is growing", Forbessaid. At the same time, Japan has been "taking a lead" on international discussions on AI, including with an initiative launched at last year's G7 summit in Hiroshima. Japan can benefit from AI advances in healthcare, Forbes said, calling the latest investments an attempt to "put Japan at the forefront of this technological revolution".
