Japan seeks 8.9 trillion yen defence boost for drones and AI warfare

Tokyo,UPDATED: Aug 31, 2026 14:54 IST

Japan plans to expand the use of drones, artificial intelligence and other new forms of warfare as part of an 8.9 trillion yen USD 55.6 billion defence budget request for the next fiscal year, according to details released by the Defence Ministry on Monday.

The preliminary request is only slightly higher than the 8.8 trillion yen USD 55 billion sought for the current fiscal year, but the final figure is expected to rise after Prime Minister Sanae Takaichi's government approves a new security and defence strategy later this year aimed at strengthening Japan's counterstrike capability.

Under its five-year defence strategy adopted in 2022, Japan doubled defence spending to about 2 per cent of gross domestic product to give its Self-Defence Forces a stronger offensive role in response to what it sees as China's growing assertiveness. Beijing has criticised Japan's military build-up as "new militarism". In a pamphlet accompanying the request, the ministry said Japan aims to "drastically strengthen its deterrence and response capability by transforming its defence capability" and adapting to newer forms of warfare, including the use of drones seen in Ukraine.

The ministry said these newer methods required domestic development and mass production of low-cost uncrewed weapons to cut costs, reduce casualties and build a more cost-efficient air defence network. It plans to use attack drones along with long-range missiles for cheaper counterstrikes. For the fiscal year beginning in April 2027, it has sought an unspecified amount to acquire unmanned attack drones that can be launched from above or under water. Officials said uncrewed weapons could also help offset a shrinking pool of military personnel as Japan's population ages and declines. Experts, however, say fully developing domestic drones would be difficult because Japan's commercial market is dominated by imports from China.

Japan has in recent years strengthened its south-western region with longer-range missiles and interceptors. To further boost its counterstrike capability, the ministry is also seeking to develop hypersonic missiles that can be launched from submarines.

The ministry also plans to bring in an integrated AI platform for command and control to improve the speed and accuracy of decision-making, including battlefield assessment and target selection. Officials said Japan is considering using existing foreign AI technologies, including from the United States, while also developing and strengthening domestic AI or combining the two. The ministry wants to build a next-generation platform called an "AI orchestrator" to integrate and use multiple AI systems while ensuring autonomous selection and operation. It also plans to create a "Defence Ministry cloud" for highly sensitive data transmission and stable communications during emergencies or disasters, though it did not specify the expected cost.

Officials said a stable and sustainable defence industry was essential for deterrence, and that Japan needed to reduce the risk of shortages caused by suppliers leaving the sector. To address this, the ministry has sought an unspecified amount for a state-owned, contractor-operated system under which the government would acquire factories and outsource manufacturing to private firms. The request also includes funding to support defence-related research and development by companies, as well as restructuring to improve production and efficiency. While profits at major suppliers such as Mitsubishi Heavy Industries, Kawasaki Heavy Industries and IHI Corp. have risen as Japan expands its military and arms exports, the wider industry has lagged because of constitutional limits that allow force to be used only for self-defence. Over the past decades, dozens of companies have left the sector due to weak profits, uncertainty and concerns about reputational damage from making weapons, especially lethal ones.

Overall, Japan's latest budget request sets out a plan to reshape its defence posture through drones, missiles, AI systems and stronger industrial support, while the final spending figure will depend on the broader security strategy to be approved later this year.

With PTI Inputs

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