Japanese Government Offers $70M for AI Translations to Combat Anime Piracy

Anime's controversial AI translations may get huge boost from Japanese government

The fight against anime and manga piracy is at the forefront of the Japanese entertainment industry. While this has become a major source of foreign currency earnings, with overseas sales exceeding 6.13 trillion yen in 2024 (approximately $38 billion), losses incurred due to the piracy of anime and manga rose to 5.7 trillion yen in 2025 from 2 trillion yen in 2022. Now, the Japanese government is stepping in with measures that are bound to become controversial. According to The Yomiuri Shinbun Japan News, the government led by Prime Minister Sanae Takaichi is planning a massive round of subsidies for 15 companies to expand the overseas market for Japanese entertainment, chiefly anime and manga, with the aim of tripling overseas sales to 20 trillion yen by 2033. The companies eligible are expected to include big publishers such as Shueisha (One Piece), Kodansha Ltd. (Attack on Titan), and Square Enix Co. (The Apothecary Diaries), but also Bandai Namco Holdings Inc., and streaming company Crunchyroll, LLC, a subsidiary of Sony Group Corp, which is also the largest shareholder of Kadokawa. According to anonymous sources cited by the report, the subsidy, which could provide a total of 11.5 billion yen, would cover half of the investment costs that the recipient companies need to better promote their works overseas. This includes translating their works into foreign languages faster with the help of generative AI. Other aims include increasing advertisement placement, holding events outside of Japan, and boosting the combined number of subscribers to the recipients' services from 100 million to 300 million. Last week, the Japanese parliament held a special session to discuss the manga industry. One of the key takeaways was the need to fight piracy more effectively, and it seems that the government is not afraid of stepping into controversial territory to do so. The dangers that generative AI poses for the creative and entertainment industry are well-known. Professional translators would be the first people negatively affected by this initiative, but there's no telling where this could stop. Back in April, animation studio WIT faced backlash for its use of generative AI in the opening sequence of Ascendance of a Bookworm. In December of last year, Prime Video had to remove its AI-generated subtitles for Banana Fish. The Economy, Trade and Industry Ministry is set to announce the companies eligible for the subsidies. In its bid to curb piracy, the Japanese government and the entertainment industry risk radicalizing fans (some of whom already justify illegal practices with the steep cost of subscription services) through the specter of AI, pushing them to rely on piracy regardless of how fast the products get translated into other languages. Surely enough, this initiative would mark a massive shift for the industry; it remains to be seen if it will be for the best.

Anime Publishers Reportedly Encouraged To Use AI Translations

The Japanese government's Ministry of Economy, Trade and Industry (METI) is reportedly set to offer 15 companies a new 'overseas promotion' subsidy, aimed at expanding Japan's original manga, anime, and live-action markets. According to the new report, METI's $70 million subsidy package will be offered to nine anime and manga publishers and aims to 'encourage' them to use generative artificial intelligence for translations, in a bid to pump out content faster in foreign markets. Per The Yomiuri Shinbun's report, METI's currently unannounced 11.5 billion yen (roughly $70 million) subsidy package will most likely be offered to Crunchyroll, Shueisha, Kodansha, Square Enix, and Bandai Namco. Supposedly, the METI intends to encourage these nine publishers to use generative AI for translations in the hopes that it will curb piracy, as unofficial translations are reaching overseas viewers at a faster rate than official ones. As of writing, the METI has not officially revealed any such subsidy program. However, it wouldn't come as much of a surprise, given the numerous AI-related government programs announced by the ministry in 2026. For instance, on June 4, the METI and the Japanese government's New Energy and Industrial Technology Development Organization (NEDO) announced that sixteen new projects were being added to its Generative AI Accelerator Challenge program, with the hope that it would combat "labor shortages." However, The Yomiuri Shinbun's report also stated that six of the non-manga and anime companies set to receive the subsidy package will include "music, gaming and live-action" related companies. It's currently unclear which six companies will be offered the subsidy, or how exactly it will be divided between the three sectors. That being said, considering that video game publishers Square Enix and Bandai Namco will reportedly be offered the subsidy package, the METI may be hoping companies will double-dip in this regard.