Japan is set to introduce AI to manage and analyze more than 5,000 publicly funded projects and initiatives. The aim is to boost policy effectiveness and optimize government spending, according to a review by the Cabinet Secretariat’s Headquarters for Promotion of Administrative Reform.

In its first year, the AI system will analyze government project reports — called “review sheets” — that detail budgets, spending, and performance metrics. A private consulting firm was commissioned for this work earlier this month.

AI will enhance its accuracy and ability to make suggestions by learning from this large dataset, according to the review. It will help ministries and agencies draft project summaries, ensure targets align with outcomes, and identify technologies that can be shared across projects.

Once fully implemented, AI will play a central role starting from the early stages of policymaking. In infrastructure projects, for instance, it will propose project scopes, develop maintenance schedules, forecast regional economic impacts, and suggest improvements based on historical data.

The initiative is expected to enhance service delivery, ensure efficient government spending and support smarter, data-driven governance across Japan.