Over the past few years, I have been moving between China and Japan, watching how industries, organizations, and communities change. Compared with the United States and China, Japan is often described as one step behind in the current AI cycle. But at IVS, the more precise word felt less like "behind" and more like "different."
Policy is hot; enterprises are still warming up
Japan's policy momentum around startups and AI is real. At IVS, defense, quantum, space, public procurement, and AI were discussed as parts of one broader industrial and national-capability agenda.
Yet the open exhibition floor felt more nuanced. Government, universities, research institutions, and founders were very visible. The core decision makers from large Japanese enterprises were less dominant. Policy has started to accelerate, but enterprise behavior still needs time to catch up.
Less obsession with the largest model, more attention to real enterprise work
Japan does have foundation-model ambition, with companies like Sakana AI becoming globally recognizable. But the more grounded movement I saw was around agents, workflows, back-office automation, customer support, and enterprise operations.
What many Japanese companies are willing to pay for is not just an AI that talks more naturally. They need systems that reduce labor pressure, stabilize complex processes, and produce measurable efficiency gains. Japan's AI opportunity may be less about model spectacle and more about the last mile of social implementation.
China is fast; Japan is deep. The opportunity may sit between them
Many teams from China, Taiwan, Korea, and India were also present, bringing validated AI SaaS products, smart hardware, and automation tools into Japanese business contexts.
China is strong at turning technology into products quickly and embedding those products into complete supply chains. Japan is deep in manufacturing, materials, robotics, precision equipment, product quality, service, and brand globalization. The next opportunity in Asian AI may belong to people and companies that can connect China's speed with Japan's depth.
Sources checked before publication
- Japan's Startup Development Five-year Plan and related action-plan updates.
- Official announcements from the Prime Minister's Office, Japan's Ministry of Defense, and IVS 2026.
- Official releases and product materials from Sakana AI, LayerX, and PKSHA Technology.
This page is an English summary adaptation of the original Chinese essay.