Japan is running out of workers. Its population declined for a 14th straight year in 2024; its working-age population is projected to shrink by nearly 15 million over the next two decades; and a 2024 Reuters/Nikkei survey found that labor shortages are the primary force pushing Japanese firms toward automation and AI adoption.
Last month, the Ministry of Economy, Trade, and Industry said it was looking to build a domestic physical AI sector, with hopes of holding 30% of the global market by 2040. The idea is to employ robots in logistics warehouses, on factory floors, and inside data centers—where they’re not taking people’s jobs, but filling the ones no one wants.
Ally Warson, a partner at UP.Partners, a venture firm focused on transportation tech and the physical world, has been telling investors this for years. Japan’s labor shortage is one prime example of where it’s becoming evident.
That’s all the more accentuated in fields where there’s a large demand for labor and few people to fill those roles. For example, Japan is looking to employ robots to take care of its aging population in home health scenarios and in other domestic sectors.
Read more: https://fortune.com/2026/04/06/japan-labor-shortage-robots-ai-robotics-humanoid/
by fortune