Japan seeks record $55.6bn defence budget with AI

Japan's defence ministry requested a record 8.9 trillion yen, or $55.6 billion, budget on Monday, with a focus on artificial intelligence, drones and long-range weapons.

The request, for the fiscal year starting in April 2027, comes as Tokyo upgrades its defence amid tensions with neighbours including China, North Korea and Russia.

The ministry said the request focuses on countering “new ways of warfare”. It wants to introduce an AI-powered decision support system and procure low-cost drones that can work with long-range missiles to neutralise enemy assets.

The ministry also said it plans to develop underwater-launched hypersonic missiles and create a new unit to bolster defences against cognitive warfare, including disinformation campaigns and other operations aimed at shaping public opinion.

The final budget could rise further. The Nikkei newspaper reported that the ministry's request may jump to more than 10 trillion yen, citing an unnamed ruling party lawmaker. Defence officials said estimated costs for many items, including missiles, drones and digital systems, had not yet been specified and would be finalised after the government revises core national security documents by the end of the year.

Japan has been increasing military spending and security cooperation in Asia, deploying missile launchers to outer islands, moving to acquire “counterstrike” capabilities and easing rules on weapons exports. China's military expansion, North Korea's missile and nuclear weapons development, and Russia's war in Ukraine have raised security concerns among Japanese policymakers.

Prime Minister Sanae Takaichi has put national defence high on her conservative agenda. Nikkei reported that her government is expected to make an overall budget request of around 143 trillion yen, compared with 122.4 trillion yen requested for the current fiscal year.