Japan’s Initiative Against Anime Piracy to Support AI Translations

The battle against anime and manga piracy is a hot topic in the Japanese entertainment scene. While this sector has become a significant contributor to the economy, with international sales projected to surpass 6.13 trillion yen in 2024 (around $38 billion), the losses from piracy have skyrocketed, jumping from 2 trillion yen in 2022 to 5.7 trillion yen in 2025. In response, the Japanese government is gearing up to implement some potentially contentious measures.

Reports indicate that Prime Minister Sanae Takaichi’s administration is planning a substantial subsidy program aimed at 15 companies to help expand the global reach of Japanese entertainment, particularly anime and manga. The goal is to triple overseas sales to 20 trillion yen by 2033. Eligible companies are expected to include major players like Shueisha (known for One Piece), Kodansha Ltd. (famous for Attack on Titan), and Square Enix Co. (behind The Apothecary Diaries), along with Bandai Namco Holdings Inc. and Crunchyroll, LLC, a subsidiary of Sony Group Corp, which also holds a significant stake in Kadokawa.

According to unnamed sources, this subsidy could total 11.5 billion yen, covering half of the investment costs for these companies to enhance their international promotion efforts. This includes speeding up translations into foreign languages with the aid of generative AI, ramping up advertising, hosting events outside Japan, and increasing the total number of subscribers to their services from 100 million to 300 million.

Recently, the Japanese parliament convened to discuss the manga industry, highlighting the urgent need to combat piracy more effectively. The government appears ready to tread into controversial waters to achieve this. The implications of generative AI for the creative sector are well-documented, and professional translators may be among the first to feel the impact of these initiatives. Back in April, animation studio WIT faced criticism for using generative AI in the opening sequence of Ascendance of a Bookworm, and in December, Prime Video had to retract its AI-generated subtitles for Banana Fish.

The Ministry of Economy, Trade and Industry is expected to announce the companies that will receive these subsidies soon. In its quest to tackle piracy, the Japanese government and the entertainment industry risk alienating fans, some of whom already rationalize illegal practices due to the high costs of subscription services. This initiative could represent a significant turning point for the industry, and only time will tell if it leads to positive outcomes.