Over the past few years, I have moved between China and Japan, watching AI enter industry and daily work. Japan is often described as behind the United States and China, but IVS showed a more complicated picture: policy, research, large companies, and startups are moving at different speeds.
Policy is moving first; companies are choosing where to begin
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.
The exhibition floor looked different. Government, universities, research institutions, and founders were highly visible, while senior decision makers from large Japanese companies were less prominent. Policy is moving first; many companies are still deciding which parts of the business are ready for AI.
Japanese companies are looking for AI that works inside the business
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 will pay for is not simply a more natural chatbot. They need systems that reduce labor shortages, make complex processes more reliable, and save measurable time or cost. The main question is how AI fits into existing work.
The differences between China and Japan can become a place to work together
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.
Chinese companies are practiced at turning technology into products quickly and spreading those products through supply chains. Japanese companies carry decades of knowledge in manufacturing, materials, robotics, precision equipment, quality, and service. The opportunity is to combine those strengths around a specific customer problem, not around a slogan about cooperation.
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.
Adapted for English from the original Chinese essay.