Japan’s AI gamble: Can technology offset the cost of an ageing society?

Deep underground, Marunouchi Heat Supply Company operates a 30km (18.6-mile) network of heating and cooling pipelines serving offices, commercial buildings and transport facilities in one of Japan’s most important business areas. The company is now using AI to manage this complex infrastructure with the goal of moving towards more automated operations by 2027.

Developed with the Tokyo-based AI company Preferred Networks, the project uses PlantPilot, an AI system trained on historical operating data and the expertise of experienced engineers. By analysing sensor information and predicting future conditions, the system provides recommendations designed to improve efficiency while preserving decades of accumulated technical knowledge.

For Japan, the country leading the rest of the world in ageing, the project represents more than an infrastructure upgrade. It reflects a broader response to a demographic crisis reshaping the world’s third largest economy.

“Our biggest challenge is securing skilled personnel,” said Hidetaka Yagi, assistant general manager of the Development and Engineering Department at Marunouchi. “As experienced workers retire, we face the risk of losing valuable operational knowledge. AI can help preserve that expertise and pass it on to the next generation.”

Japan’s ageing population has created labour shortages across industries, from manufacturing and logistics to energy and healthcare. Unlike concerns in some countries that automation will replace workers, Japan is increasingly positioning AI as a partner – a tool to extend human capabilities rather than eliminate them.

The Marunouchi experiment reflects this approach. The goal is not to remove engineers from decision-making but to combine human experience with AI’s ability to process large volumes of data and support faster, more efficient decisions.

However, Japan’s AI challenge goes beyond improving existing systems. The country is also seeking to rebuild its position in a global technology race in which it has struggled to keep pace with the United States and China.