$70 Million Investment Aims to Boost AI-Generated Translations in Japanese Anime, Manga, and Gaming

The Japanese government’s Ministry of Economy, Trade and Industry (METI) is gearing up to provide a new “overseas promotion” subsidy to 15 companies, aimed at boosting Japan’s manga, anime, and live-action sectors. Reports indicate that this $70 million subsidy package will be directed towards nine anime and manga publishers, with the goal of encouraging the use of generative artificial intelligence for translations, allowing for quicker content release in international markets.

According to a recent report, the unannounced subsidy, totaling 11.5 billion yen (approximately $70 million), is likely to benefit major players like Crunchyroll, Shueisha, Kodansha, Square Enix, and Bandai Namco. The METI’s strategy appears to be focused on leveraging generative AI to enhance translation processes, aiming to reduce piracy, as unofficial translations are currently outpacing official releases in reaching global audiences.

While the METI has yet to officially confirm this subsidy program, it aligns with the ministry’s trend of launching various AI-related initiatives, including those announced in 2026. For example, on June 4, the METI and the New Energy and Industrial Technology Development Organization (NEDO) revealed the addition of sixteen new projects to their Generative AI Accelerator Challenge program, aimed at addressing “labor shortages.”

Additionally, the report mentions that six companies outside the manga and anime sectors, likely from the music, gaming, and live-action industries, are also set to receive funding. The specific companies and the allocation of funds among these sectors remain unclear. However, with Square Enix and Bandai Namco reportedly in line for the subsidy, it seems the METI may be encouraging these companies to explore opportunities across multiple sectors.