Japan’s Defense Ministry is seeking an 8.9 trillion yen ($55.6 billion) defense budget for the fiscal year beginning April 2027, as Tokyo accelerates the modernization of its military capabilities. The proposal reflects Japan’s broader effort to strengthen deterrence amid growing security concerns involving China, North Korea and Russia. Under the defense strategy introduced in 2022, Japan has been moving toward defense spending equivalent to about 2% of GDP and expanding capabilities that go beyond its traditionally defensive posture.
A major focus is the growing use of unmanned weapons and drones. Japan wants to develop and mass-produce relatively inexpensive attack drones that can operate alongside longer-range missiles, creating a more cost-effective defense network while reducing risks to personnel. The shift is partly influenced by lessons from the war in Ukraine, where drones have become an important part of modern warfare. Unmanned systems could also help Japan deal with its shrinking and aging population, which makes maintaining a large military workforce increasingly difficult.
Artificial intelligence is another central component of the modernization effort. Japan plans to introduce an integrated AI platform capable of helping commanders analyze battlefields, assess threats and make faster decisions. The Defense Ministry is also considering an “AI orchestrator” that could coordinate multiple AI systems, potentially combining foreign technologies with domestically developed models. Alongside this, Japan wants to establish a dedicated Defense Ministry cloud to handle sensitive information and maintain communications during emergencies or conflicts.
Missile capabilities are also being expanded, including long-range cruise missiles and hypersonic weapons, with Japan seeking to strengthen its counterstrike capability. The overall strategy represents a significant transformation of Japan’s postwar defense approach, with technology, automation and longer-range weapons becoming increasingly important. For the wider Asia-Pacific region, the buildup signals that Japan is preparing for a more contested security environment while attempting to create a military force that is smarter, more automated and less dependent on large numbers of personnel.
