Future of Artificial Intelligence: Japan's Path to Growth Email address

Abstract

This paper conducts a research on the importance of Total Factor Productivity (TFP) while focusing on the Artificial Intelligence (AI) trends adapted in Japan. We answer the question of, "Is Japan utilizing AI as a driver for (TFP) or will they incorporate it as a new factor of production?" by looking at the TFP in Japan's booming industries while shedding insight on the governmental mindset of this phenomena. The mission of this paper is to reach a general consensus on TFP and how Japan's incorporation of AI in their factors of production changes the levels of marginal productivity of labor. The objective is to provide policymakers, wage setters and decision makers with a clear correlation between Japan's high TFP and their use of AI.