The Japan Ministry of Defense announced on August 31st the details of its budget request for the fiscal year 2027, totaling ¥8.9 trillion (approximately $556 billion). The budget documents reveal that Japan is adjusting its defense strategy, planning to introduce drones, artificial intelligence (AI), and new combat methods.
In the budget request explanation documents, the Ministry of Defense stated that Japan is drawing lessons from the use of drones and other new combat techniques on the Ukrainian battlefield. The strategic goal is to “transform defense capabilities and fundamentally strengthen deterrence and response capabilities.”
The Defense Ministry indicated that the new combat methods entail the development and mass production of low-cost unmanned equipment domestically in Japan, aiming to not only reduce costs and minimize casualties but also establish a more cost-effective air defense system.
The Defense Ministry plans to synchronize the use of attack drones with long-range missiles to enhance a more cost-effective retaliatory capability. In the fiscal year starting in April 2027, the Ministry of Defense has applied for undisclosed funds for the procurement of attack drones that can be launched from above or below the water surface.
The total preliminary budget amount is slightly higher than the ¥8.8 trillion (about $550 billion) requested in the current fiscal year. The defense budget is expected to increase significantly, but detailed specifics will only be announced after government approval of the new security and defense strategies aimed at enhancing Japan’s retaliatory capabilities.
According to the revised “National Security Three Documents” at the end of 2022 and the Mid-Term Defense Program, Japan has increased defense spending to around 2% of the Gross Domestic Product (GDP). This move is aimed at strengthening the Self-Defense Forces’ retaliatory capabilities in response to the increasing military pressure from China.
The Defense Ministry plans to introduce an integrated AI platform into its command and control system to enhance the speed and accuracy of decision-making processes such as battlefield assessment and target selection.
Officials from the Defense Ministry stated that Japan is considering adopting existing foreign AI technologies, including those from the United States, while also developing and strengthening domestic AI, or combining both for use.
The Defense Ministry plans to construct the next-generation “AI Coordinator” platform. This platform will integrate and call on multiple AI systems while ensuring autonomous selection and operation.
Additionally, the Defense Ministry is planning to establish the “Defense Cloud” for high-sensitivity data transmission and to provide a stable communication network in emergencies or disasters.
However, the Defense Ministry did not disclose the specific estimated costs of such measures.
Furthermore, the Defense Ministry applied for undisclosed funds to support enterprises owned by the state or operated by contractors to ensure stable production and supply of defense equipment.