Tokyo, September 1, 2026: Japan is preparing one of its most significant defence upgrades in decades, with the country’s Defence Ministry seeking a record ¥8.9 trillion (about $55.6 billion) for the next fiscal year. The proposed plan puts special emphasis on artificial intelligence, drones, long-range missiles and other technologies designed for modern warfare.

What is Japan planning?

The proposed budget would expand Japan’s ability to use unmanned systems, AI-powered command tools and advanced missile technology.

Among the priorities are low-cost attack drones, long-range cruise missiles, missile interceptors and hypersonic weapons. Japan also wants to develop an AI-based system capable of helping military commanders process information and make faster decisions.

Why does Japan need more defence technology?

Japan faces a difficult security environment in East Asia. China’s growing military capabilities and increasing activity around the region have encouraged Tokyo to strengthen its deterrence capabilities.

Japan also has another challenge: its population is ageing and shrinking. That means maintaining a large traditional military force is becoming increasingly difficult.

Drones and other autonomous systems could therefore help Japan perform some military tasks with fewer personnel.

Why are drones so important?

The war in Ukraine has demonstrated how inexpensive drones can influence modern battlefields. They can be used for surveillance, targeting and attacks while potentially costing far less than conventional weapons.

Japan wants to adapt these lessons to its own defence planning by developing and producing large numbers of relatively inexpensive unmanned systems.

What role will AI play?

AI is becoming increasingly important in military decision-making.

Japan plans to develop an integrated AI system and a dedicated Defence Ministry cloud infrastructure. The objective is to help analyse large volumes of information and improve the speed of command decisions.

The bigger shift is from relying mainly on traditional platforms toward combining humans, AI, drones, satellites, missiles and networked systems.

Is this only about China?

China is a major factor behind Japan’s defence transformation, but Tokyo is responding to a broader change in the regional and global security environment.

Japan is also watching developments involving North Korea, Russia and the wider Indo-Pacific region.

The country’s defence strategy is consequently moving toward greater long-range capabilities and stronger deterrence.

Why is the budget controversial?

Japan’s postwar security policy has traditionally placed strong emphasis on defensive capabilities. Its recent military expansion therefore represents a major policy shift.

China has previously criticized Japan’s military buildup as a return to “new militarism,” while Tokyo argues that stronger defence capabilities are necessary to respond to changing security threats.

What does this mean for Asia?

Japan’s move could accelerate the wider military-technology competition in the Indo-Pacific.

As countries increasingly invest in drones, AI, missiles, cyber capabilities and autonomous weapons, future military power may depend less on the sheer number of soldiers and more on technology, intelligence and the ability to connect different systems.

In simple terms, Japan is preparing for a new kind of warfare—one in which AI and unmanned weapons could become as important as traditional aircraft, ships and troops.