Bank of Japan
Japan's central bank, which sets monetary policy.
The Bank of Japan named AI-related demand the second of its main risks in its Outlook Report of 30 October 2026, warning that asset prices could adjust if profits fail to keep pace with investment.
Last refreshed: 6 November 2026 · Appears in 1 active topic
Why does the Bank of Japan see AI demand as a risk?
Timeline for Bank of Japan
Named AI-related demand the second of its main risks
AI: Jobs, Power & Money: Bank of Japan flags AI demand as a riskBackground
Founded in 1882, the Bank of Japan is Japan's central bank and issues the yen. Kazuo Ueda has been governor since April 2023. The bank ended negative interest rates in March 2024 and has raised its policy rate several times since. It also runs the Tankan, a quarterly survey of business conditions.
Its reading of AI runs opposite to much Western debate. Japan is short of workers, so the bank treats AI as Labour-saving investment that a tight Labour market could speed up; its stated worry is that capital replaces Labour too slowly, not that jobs vanish.
The October 2026 report traced hyperscaler orders from Japanese makers of power and air-conditioning equipment down to smaller suppliers. Its warning concerned investment returns and asset prices rather than unemployment, which sets Tokyo apart from central banks that study AI through hiring data.
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Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Updated 6 November 2026. Editorial standards.