Japan requests $55.6B defense budget for AI command systems, underwater drones and hypersonic missiles

Japan Unveils Defense Budget Centered on AI and Autonomous Warfare

Japan's Defense Ministry disclosed an 8.9 trillion yen ($55.6 billion) budget request for the coming fiscal year, marking a strategic shift toward artificial intelligence and autonomous systems in national defense1

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. The preliminary figure represents only a marginal increase from the 8.8 trillion yen ($55 billion) requested for the current fiscal year, though experts anticipate the final amount will climb substantially once Prime Minister Sanae Takaichi's government approves the revised security and defense strategy later this year2

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. This budget request concludes a five-year, 43 trillion yen plan that has reshaped Japan's military posture5

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Defense Modernization Addresses China's Growing Regional Influence

Under its five-year defense strategy established in 2022, Japan has doubled defense spending to approximately 2% of GDP, building up the Self-Defense Forces' offensive capabilities to counter China's growing assertiveness in the region3

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. Beijing has criticized Japan's defense buildup as "new militarism," yet Tokyo continues to strengthen its counterstrike capabilities through advanced technologies and new ways of warfare inspired by Ukraine's deployment of drones4

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. The Defense Ministry aims to "drastically strengthen its deterrence and response capability by transforming its defense capability" to meet evolving regional tensions1

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AI Orchestrator to Transform Command and Control Systems

The ministry plans to introduce an integrated AI platform in command and control to accelerate decision-making speed and accuracy, including battlefield assessment and target selection2

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. Japan is evaluating existing foreign AI technologies from the U.S. while simultaneously developing domestically produced AI systems, or potentially combining both approaches3

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. The centerpiece is a next-generation platform called an "AI orchestrator," designed to integrate and use multiple AI systems while ensuring autonomous selection and operation1

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. Additionally, the ministry seeks to build a "Defense Ministry cloud" for highly sensitive data transmission and stable communications networks during emergencies or disasters, though specific costs remain undisclosed4

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Underwater Attack Drones and Hypersonic Missiles Expand Arsenal

For the fiscal year beginning in April 2027, the ministry is requesting funding to acquire unmanned attack drones capable of launching from above or underwater2

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. These drones and missiles will coordinate for cost-effective counterstrikes, as new ways of warfare require domestic development and mass-production of low-cost uncrewed weapons to reduce costs, minimize casualties, and build a more efficient air defense network1

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. Officials indicate uncrewed weapons could help compensate for falling military personnel numbers as Japan's population ages and shrinks3

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. To further strengthen counterstrike capabilities, the ministry seeks to develop hypersonic missiles that can be launched from submarines4

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. Japan has already fortified its southwestern region with long-range missiles and interceptors in recent years2

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Strengthening the Defense Industrial Base Through Government Ownership

Recognizing that deterrence requires stable and sustainable defense equipment production, the Defense Ministry has requested funding for a state-owned, contractor-operated system to ensure continuous production and supplies1

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. Under this model, the government would acquire factories and outsource manufacturing to private firms, reducing supply chain risks caused by suppliers withdrawing from the sector3

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. The budget request includes funding to support companies' defense-related research and development or restructuring to strengthen production efficiency4

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. While profits at major suppliers such as Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and IHI Corp. have risen as Japan builds up its military and expands arms exports, the industry lags overall due to constitutional limits on the use of force for self-defense only2

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. Dozens of companies have withdrawn over past decades due to poor profits, uncertain business outlook, and reputational concerns about manufacturing lethal weapons1

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. Experts note that developing fully homemade drones presents challenges given Japan's commercial market is dominated by imports from China3

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