Tokyo Raises Military Investment to $55.6 Billion for Drones, Missiles and Artificial Intelligence

Japan is preparing a significant expansion of its military capabilities, directing investment toward attack drones, long-range missiles and the use of artificial intelligence in operations.

For the fiscal year beginning in April 2027, Japan’s Defense Ministry has submitted an initial request for 8.9 trillion yen, equivalent to around $55.6 billion. The budget could increase further after Prime Minister Sanae Takaichi’s government approves the new security strategy.

One of Tokyo’s priorities is the domestic development and production of low-cost unmanned systems in large quantities. Attack drones are expected to operate alongside long-range missiles, enabling faster counterstrikes and reducing the risk to military personnel. Plans also include acquiring drones that can be launched from the air or underwater.

The use of unmanned systems is seen as a way to address military personnel shortages at a time when Japan’s population is aging and shrinking. However, establishing an entirely domestic drone industry poses challenges, as the Japanese market is dominated by Chinese imports.

The ministry’s plans also include building submarine-launched hypersonic missiles and improving air defenses through interceptor missiles. Artificial intelligence will be used in command systems to analyze the battlefield, identify targets and speed up the decision-making process.

Japan also aims to create the “AI Orchestrator” platform, which will coordinate several artificial intelligence systems.