Japan’s Digital Minister Calls for SME Tech Investment to Curb Inflation

Japan’s Digital Transformation Minister, Takaichi Sanae, is urging small and medium-sized enterprises (SMEs) to accelerate their adoption of technology. She argues this shift is a critical national strategy to combat persistent inflation. Minister Takaichi stated that improving productivity through digital tools is essential. By streamlining operations, SMEs can reduce their own costs. These savings, she explained, can then be passed on to consumers, helping to lower overall prices. The minister specifically highlighted the potential of artificial intelligence (AI). She recommended that SMEs use AI to automate routine tasks like document preparation and customer service inquiries. This would free up employees for more complex work. This policy forms part of Japan's broader economic response to inflation. The government views technological modernization, particularly for smaller businesses, as a long-term solution to stabilize prices and strengthen economic resilience.