Feature: Japan's FY 2027 defence budget request targets AI, unmanned, stand-off capabilities

Japan's Terra Drone is supplying 300 units of its Terra Entry modular UAV to the MoD for training purposes. (Terra Drone )

Japan has published the draft outline of its defence budget request for fiscal year (FY) 2027, setting out planned spending priorities ahead of the government's final budget formulation process.

The Ministry of Defense (MoD) submitted a budget request of about JPY9 trillion (USD55.6 billion) on 31 August, focusing on responses to new forms of warfare, Japan's ability to conduct prolonged operations, and the country's defence foundation.

According to the MoD, Japan plans to revise its three key security documents – the National Security Strategy, National Defense Strategy, and Defense Buildup Program – in 2026 as part of its five-year effort to strengthen deterrence and response capabilities.

The MoD said programmes affected by revisions to the three strategic documents will be submitted as “budget request items” and assessed during the budget formulation process. Funding for these items has not yet been set in the request, leaving room for the final budget total to increase.

The ministry identified three pillars and nine priority areas in the budget request. The first pillar, which focuses on responding to new forms of warfare, includes artificial intelligence (AI), unmanned assets, stand-off capabilities, integrated air and missile defence, space, and cyber capabilities.

AI

In the FY 2027 budget request, the MoD prioritised the adoption of AI in command-and-control functions through several budget request items, including decision-support systems for Joint Operations Command, the next-generation AI platform AI Orchestrator, and the expansion of Defense Cloud.

The Joint Operations Command support system is intended to give commanders “decision superiority” by integrating and analysing data, supporting target selection, and providing a clearer view of the operational situation, the MoD said.