Artificial Intelligence

There is a tendency to see artificial intelligence as the latest technology fad, either a buzzword that canny entrepreneurs exploit or the starting point for dystopian nightmares.

Both are potentially accurate descriptions of much of the discussion surrounding AI, but both miss the most important point: AI is almost certain to become the most critical feature of the digital economy, assuming a role akin to electricity in the industrial revolution. If that prediction is correct – and few disagree – then mastery of AI and leadership in the field could determine the future economic and military balance of power.

One study estimates that AI could contribute up to US$15.7 trillion to the global economy by 2030, a boost of 14 per cent that will come from productivity gains and shifts in consumer behaviour. But Japan risks missing out. The government launched the AI Technology Strategy Council in 2016 to develop a road map for development and commercialisation. It prioritised productivity, mobility and health. But money matters, and the Japanese Government’s 2018 AI budget of ¥77.04 billion (NZ$1b) – while a 30 per cent jump from 2017 – will still be significantly less than the amount the United States and China plan to spend. Japan must step up its efforts, alone and in partnership, to ensure that it remains in the first tier of countries in this area.