SoftBank and Sony Boost AI Investments: Japanese AI Companies Soar After Nobel Prize Announcement

The recent awarding of the 2024 Nobel Prizes in Physics and Chemistry, both highlighting advancements in artificial intelligence, has sparked significant interest in Japan. How is the Japanese market responding? What is the current state of AI development in Japan?

According to special correspondent, the announcement of the Nobel Prizes had a positive impact on the stock prices of several AI-related companies and semiconductor sectors in Japan on October 9 and 10. On October 9, some Japanese AI firms saw stock prices surge by over 10% during trading, while semiconductor manufacturers also reached new highs since their initial public offerings.

Amid the global AI boom, Japanese companies are rapidly expanding their presence in this sector. SoftBank Group has made AI a strategic priority, investing in related companies through its Vision Fund. Last week, SoftBank's chairman and CEO, Masayoshi Son, emphasized the importance of developing high-performance AI capable of processing vast amounts of learning data. Furthermore, Sony's recent corporate report highlighted AI as a core technology area for the company.

In the field of chemical materials, Mitsui Chemicals has begun utilizing generative AI to explore new applications for materials. However, there remains a cautious and conservative attitude among Japanese companies and individuals towards adopting generative AI. The latest "White Paper on Information and Communication" published by Japan's Ministry of Internal Affairs and Communications revealed that only 46.8% of surveyed companies employ generative AI in their operations, a stark contrast to 84.7% in the U.S. and 84.4% in China. Main concerns include data security and potential copyright infringements.

On an individual level, only 9.1% of respondents reported using generative AI. The most common reasons for non-use were a lack of knowledge on how to utilize the technology, accounting for over 40%, followed closely by nearly 40% stating they do not find it necessary in their daily lives, the highest percentage among all surveyed countries.