BOJ's Ueda says Japan could do well with AI replacing labor, given existing shortages
EWJ•Bank of Japan Governor Kazuo Ueda said AI advances had provided a positive demand shock for Japan's economy and that the country could do well with AI replacing labor amid significant shortages. He also raised concerns about cyber risks at small banks and firms.
1. AI and labor shortages
Ueda said rapid advances in artificial intelligence had provided a positive demand shock for Japan's economy, though supply-side factors would also need to be studied. He said Japan could do well with AI replacing labor given its significant labor shortages.
2. Cyber risk concerns
Ueda said he worried about cyber risks to financial stability, adding that some small banks and firms had not done enough to guard against them.
