Meaningful Mentors

Heather Kodhelaj and Leo Abufadil share how being chosen as Bishop Scholars has opened doors to their future careers.

From left: Leo Abufadil, ACCJ Executive Director Laura Younger, and Heather Kodhelaj at the 2025 ACCJ Shinnenkai

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In her final year of high school, Heather Kodhelaj’s philosophy teacher suggested that she go into the foreign service. “I didn’t see a clear path, but my mom encouraged me to start traveling.”

Though Kodhelaj was born and raised in the United States, her parents are Albanian and immigrated in 1998. On her mother’s advice, Kodhelaj went to Europe. When she returned to Philadelphia, she caught herself falling into a rut and headed to South Korea for more international experience.

“When I came back from Korea, I was changed as a person and had fallen in love with Asia,” she explained. “My mom and I bonded over her love of a Korean drama called Crash Landing on You. It’s about a North Korean and a South Korean who fall in love despite their different cultures. Having been raised under Communism, she really identifies with the story.”

Seeing how time abroad was shaping Kodhelaj, her mother encouraged her to keep going. “When I heard about the Bishop Scholarship, she said, ‘Take a chance, the worst they can say is no.’”

Kodhelaj arrived at the American Chamber of Commerce in Japan (ACCJ) on August 22, 2024, for a five-month internship provided by the scholarship established after ACCJ leader Bill Bishop, his wife, and daughter were killed on Christmas morning in 2022. The award, established by the ACCJ and the US-Japan Bridging Foundation, brings students from the United States to study at Temple University, Japan Campus, where Bishop was a lecturer and board member.

The experience, Kodhelaj said, opened her eyes and changed the impression she had of Japanese business culture. Working on the ACCJ–Kansai D&I Summit was especially meaningful.

“The collage of 10 years of their events, seeing how everyone was so happy, talking, interacting, not a phone in sight—it was just genuine human connection. That they had done this for a decade, even through Covid … the perseverance of people was really inspiring,” she said.

Kodhelaj was also inspired by the her interactions with the Women in Business Forum, which she credits with teaching her to be more confident.

“I struggle with impostor syndrome. At the first event I helped with, I asked the executive who was speaking how to get over that feeling that you don’t belong in a room, that you’re not supposed to be there,” she recalls.

“I learned that, at the ACCJ, it’s not about your title or how much money you make, it’s what knowledge you bring to the table. And you don’t always have to have something valuable to say; listening to others is valuable as well. Now I understand that everyone belongs in the room, you always belong.”

Kodhelaj said she is grateful for the experience, the chamber, and Bishop. “I wish I could have met him. I learned that his daughter had also been an intern. That was very emotional for me. I could feel how important my role was, what it means to be an intern at the ACCJ.”

Following her internship, Kodhelaj has returned to Temple University in Philadelphia for her final semester studying global relations.

Leo Tanaka Abufadil already had ties to Japan before arriving on January 14 as a Bishop Scholar. His mother is Japanese and he attended elementary school in Amagasaki, Hyogo Prefecture, during summers despite growing up in Oklahoma.

Now a political science and international studies major at Trinity University in San Antonio, Texas, the Tulsa native said he is “fixated on the bilateral relationship between Japan and the United States.”

To pursue that interest, he applied for the US-Japan Bridging Foundation Scholarship, which he received, and the foundation then said they had another opportunity they felt he would be right for. “I was honestly very moved by the memory of Bill Bishop,” Abufadil said.

“As a Japanese American, the Bishop family’s passion for cultivating the bilateral relationship resonated with me. My goal as an intern was to propel that relationship while honoring the Bishop family’s legacy.”

Coming in, Abufadil explained, he had an idea of what the ACCJ might be like. He expected to work with economics and trade relations while improving his formal Japanese, known as keigo. 

“But it’s been so much more than that,” he said. “Not only have I been able to sharpen my keigo, I gained a new perspective on how businesses operate in Japan. Something that was really illuminating and captivating is how intertwined business and government are. Being able to sit in on a lot of external affairs meetings, I could see the direct impact US and Japanese domestic and international policies each have on the other country. I find that quite fascinating.”

Abufadil said he especially loved that his time at the ACCJ wasn’t limited to one department or one activity. “There were a myriad opportunities. It was wonderful.”

The project he said he’s most proud of is the Student Internship Portal. “To see how the other interns and I, as well as our supervisors, worked so hard on this project, and to watch it take off, feels so rewarding. I love that I was able to make a tangible impact.”

He also recalls an unexpected moment with a member of a Japanese ministry.

“He was willing to talk to me and break down financial technology—something I had never engaged with in my life. People’s willingness to explain things and put them into perspective has been amazing. It’s something I’ll take with me for the rest of my life.”

Unified and Secure

How Cisco is ensuring that artificial intelligence is powerful, efficient, and safe.

As artificial intelligence (AI) sweeps the world and finds its way into nearly everything we touch, there is growing concern about its safety. The breakneck pace at which companies are deploying this emerging technology—whose behavior is not fully understood—has some people delighted and others sounding alarms.

American Chamber of Commerce in Japan President’s Circle member Cisco is committed to securing AI technologies by integrating advanced measures and encouraging a culture of innovation and responsibility. By doing so, the company is ensuring that AI solutions are not only powerful and efficient but also safe and reliable for users in Japan and around the globe.

On March 26, Cisco hosted the AI Infrastructure and Security Summit at the ANA InterContinental in Tokyo for customers, partners, analysts, and the press. During the event, the tech innovator presented its latest solutions to promote further safe and secure utilization of generative AI by Japanese companies and local governments.

“To address the increasing challenges of managing AI security risks, Cisco’s latest innovations harness agentic AI to empower IT professionals with advanced tools for efficiently managing threats and streamlining security operations,” Cisco Japan President Yoshiyuki Hamada told The ACCJ Journal. “These innovations simplify the complexities of navigating the AI era, enabling security teams to stay ahead in today’s dynamic landscape,” he explained.

Thinking Machines

Agentic AI is a form of artificial intelligence that acts with agency to achieve specific goals—essentially a machine that can take on tasks and make decisions on its own. Jason Clinton, chief information security officer of Anthropic, developer of the Claude large language model, told Axios in April that he expects to see fully AI employees become part of companies in 2026.

“Agentic AI systems can make rapid decisions, manage complex tasks, and adapt to changing conditions,” Denise Shiffman, senior vice president of networking strategy and marketing explains on Cisco’s official blog. “They have agency to reach beyond the data their large language model was trained on and interact with external environments, such as IoT sensors, cloud platforms, [and] analytics software. The possibilities are endless for what an agentic AI system can achieve in improving customer experiences, increasing productivity, and creating new innovation.”

Such independent technology might give many IT departments pause. Clinton noted when speaking to Axios: “In that world, there are so many problems that we haven’t solved yet from a security perspective that we need to solve.” 

This and other AI-related challenges are why Cisco has formed a partnership with chipmaker Nvidia to provide enterprises with an AI factory architecture that puts security at its core.

Called Cisco Secure AI Factory with Nvidia, these are data centers purpose-built for AI workloads that dramatically simplify how enterprises deploy, manage, and secure AI infrastructure at any scale.

Safe in the Fast Lane

At the core of these data centers is Cisco Silicon One, a unified network silicon architecture that facilitates fast switching and routing. Launched in 2019, the family of network processors is now in its fourth generation. Whereas a CPU is the brain of a computer or smartphone, Silicon One is the brain of high-performance routers and switches. The top-end G200 model is capable of routing data and switching traffic at 51.2 terabits per second—speeds essential for handling the massive amounts of data flowing among AI clusters.

“We are collaborating to deliver networking technology solutions through a unified architecture, with a focus on simplifying and optimizing customer experiences,” explained Hamada. “By enabling interoperability between Cisco Silicon One and Nvidia Spectrum, as well as their respective networking architectures, the partnership aims to provide full-stack solutions that prioritize customers’ needs.”

This approach, Hamada added, allows customers to maximize AI infrastructure investments while leveraging existing management tools and processes across both front- and back-end networks. “Additionally, the collaboration creates new market opportunities for Cisco by streamlining the management of enterprise and cloud provider networks through a unified architectural model.”

A New Architecture for Security

It seems as if every application you launch in 2025 is brimming with AI. Document readers want to save you time by offering a summary. Mail applications want to pull out key points and reply on your behalf. And large language models are handing smart assistants and search engines their coats and hats as they see them to the door. How we interact with devices and information is changing in the blink of an eye, and the amount of data being passed around is growing exponentially.

Networks and data centers as we’ve known them are often not up to the task of securing the high-performing, scalable infrastructure and AI software required to develop and deliver AI applications. A new architecture is needed—one that embeds security in all layers of the AI stack and automatically expands and adapts as the underlying infrastructure changes.

This is where the strengths of, and synergy between, Cisco and Nvidia technologies come into play.

“Cisco and Nvidia are collaborating to deliver networking technology solutions through a unified architecture, with a focus on simplifying and optimizing customer experiences,” said Hamada.

Cisco Secure AI Factory with Nvidia is expected to build on the companies’ unique abilities to offer flexible AI networking and full-stack technology options that leverage the planned joint architecture. The partnership will bring together technologies from Cisco, Nvidia, and our ecosystem partners into a secure AI factory architecture for enterprise customers.

The State of AI Security

Cisco did extensive research in developing the Cisco Secure AI Factory with Nvidia and its solutions such as Hypershield and AI Defense.

The company recently published the Cisco State of AI Security Report, which analyzes dozens of AI-specific threat vectors and more than 700 pieces of AI-related legislation to highlight key developments in a rapidly evolving AI security landscape.

In its conclusion, the authors note that the report “validates that the AI landscape has and continues to evolve rapidly. As we drive towards future breakthroughs in AI technology and applications, Cisco remains committed to AI security through our contributions to the community and cutting-edge solutions for customers pushing the envelope of AI innovation.”

Expo Connections

From 1970 to 2025, Osaka has played host to chamber member company opportunities and innovations.

Japan has been chosen three times as the site of the world’s fair. The first was in 1940, when Tokyo was to host an event that would have commemorated the 2,600th anniversary of the country’s founding. The onset of World War II put an end to that plan. But two other times—in 1970 and this year—the global celebration has come to Osaka, putting Japan in the spotlight. Both celebrations of global unity and culture presented opportunities for members of the American Chamber of Commerce in Japan (ACCJ). The ACCJ Journal spoke with two Corporate Sustaining Member companies about those experiences. 

Expo ’70: Aflac

Aflac celebrated its 50th anniversary in Japan last year, and is today the country’s leading provider of cancer and medical insurance in terms of policies in force. The company’s entry in the market was inspired by a visit to the very event Osaka is hosting this year: a world’s fair.

John Amos, Aflac’s first chief executive officer and one of three brothers who founded the company, observed Japanese people wearing surgical masks during his trip to Expo ’70. He figured that people who were that keen on preventing the spread of colds and the flu must be health conscious and would understand the need for cancer insurance, Aflac’s core product. He was right.

Principal founder John Amos (center) watches Deputy Prime Minister Takeo Fukuda perform the traditional kagami-biraki sake barrel-breaking at Aflac’s grand opening party in 1974.

For the Columbus, Georgia-based company to bring that protection to the people of Japan took some effort. Cancer insurance was unprecedented at the time and required approval from several government ministries and agencies. There were no nationwide statistics on cancer hospitalizations, so the Aflac team had to gather the data from scratch. It took four years, but in October 1974, Aflac obtained its license, and the next month launched Japan’s first cancer insurance product. Sales took off right away.

Today, Aflac Japan has 4,874 full-time employees, and its products are sold by approximately 6,600 sales agencies and some 114,000 licensed associates employed by those agencies. More than 20,000 Japanese post offices and 360 banks—nearly 90 percent of all banks in Japan—serve as points of sale for Aflac.

“Localization has been an important factor in our success,” notes Andrew J. Conrad, senior vice president, general counsel, and compliance officer for Aflac Life Insurance Japan Ltd. “For example, back when Aflac first started selling cancer insurance in Japan, doctors and families typically hid cancer diagnoses from patients. They believed that knowing the diagnosis would be too stressful and hinder the patient’s recovery. Accordingly, in those early days, Aflac had to devise ways to pay claims without letting the patient know. This included sending documents in plain white envelopes, sending documents to family members at predetermined addresses, and making calls outside the home.”

Another way in which Aflac adapted to the local culture was to give its trademark duck—celebrating its 25th birthday this year—a softer, quieter character. It’s more consensus-minded than its US counterpart. In fact, for a time, there was a Maneki Neko Duck—the Aflac Duck dressed as a traditional beckoning cat good-luck charm.

In addition to insurance, Aflac focuses on two other areas in Japan: childhood cancer and youth scholarships. Three Aflac Parents Houses—two in Tokyo and one in Osaka—serve as comprehensive support centers for children with cancer, or other serious diseases, and their families. They provide accommodations for children undergoing treatment at hospitals away from home. Families can stay for ¥1,000 per night per person, with no charge for the affected children. More than 150,000 people, including those from overseas, have stayed at an Aflac Parents House. And through its scholarship fund, Aflac has helped more than 3,600 high school students who have had childhood cancer or lost a parent to cancer.

Aflac is looking ahead to the next 10 years and beyond with a new long-term management vision called “By Creating ‘Living in Your Own Way, Create New Shared Value,’” explains Conrad, who also serves as senior vice president of Aflac International, Inc. and is an ACCJ governor. “This vision highlights Aflac’s practice of using the company’s unique knowledge and resources to address societal issues in a manner that meets customer needs and creates economic value over the long-term.”

Japanese society has benefited greatly from Aflac’s dedication to helping others, and it all started among the pavilions of the Osaka expo.

Expo 2025 Osaka, Kansai: IBM

Another ACCJ Corporate Sustaining Member is making a societal difference at this year’s expo. IBM Japan, Ltd. is giving guests the opportunity to try its AI Suitcase, a luggage-shaped robot that guides people with visual impairments to their destinations.

IBM Japan is working as a member of the Consortium for Advanced Assistive Mobility Platform, commonly known as the AI Suitcase Consortium, which leads the development as well as the demonstration at the expo. AI Suitcases are being used in the Smart Mobility Expo Robot Experience of the Future Society Showcase Project.

Enabled by artificial intelligence (AI), various sensors, and human–machine interfaces, the device autonomously navigates a user from point A to point B based on what the user asks for through voice interaction. The device is equipped with three cameras—positioned on the left, front, and right—which enable it to see the surroundings and describe them through audio, including how many people are nearby and what objects or structures are around.

The device’s capabilities have evolved significantly since its development began in late 2017. Until around 2023, AI Suitcase mainly used deep learning technology for image recognition of surrounding pedestrians. But the consortium began incorporating AI in 2024 as the technology rapidly advanced. AI has enabled new features, such as flexible voice-based interaction and detailed audio descriptions of the surrounding environment.

“The AI Suitcase project is a cornerstone of our work in the accessibility research domain,” explains Hironobu Takagi, senior manager of the accessibility research team at IBM Research in Tokyo. “Chieko Asakawa, IBM fellow and chief executive director of Miraikan, has defined this grand challenge as ‘real-world accessibility,’ which combines AI, software, computer–human interaction, robot operation, and human social behaviors.”

Miraikan is the commonly used name for the National Museum of Emerging Science and Innovation, located in Odaiba. The popular innovation hub has been offering daily demonstrations of AI Suitcase since April 2024.

Takagi, who has been a researcher with IBM since 1999, says that, working with key partners, the company is successfully showcasing “tech for good” not only to Japanese society but the whole world through Expo 2025.

“Our experience at Miraikan has given us great confidence in the practicality of AI Suitcase,” he noted. “The know-how we developed at Miraikan, such as how to safely operate the AI Suitcase on a daily basis and how to explain its use briefly, has proved highly valuable, especially at Expo 2025.”

As of May 1, more than 216 groups had already participated in AI Suitcase since the opening of Expo 2025 on April 13, with 200 more reservations already booked for the first two weeks of May. Participants commented on how surprised they were that the robot had guided them safely, and said they hoped many people would experience this technology, because it is useful for society. One visually impaired person also commented that it was the best highlight of the Expo.

Still, this is one of many test runs for the life-changing technology. “Given that the current version of AI Suitcase is still a research prototype, very expensive to build, and operable only in limited environments, we have many hurdles to overcome—technically, socially, and legally—before it can be deployed in the real world,” admits Takagi. “But to make technologies like AI Suitcase truly practical, it is essential to offer members of the general public hands-on experiences and to broaden society’s understanding. If you have a chance to visit Osaka or Tokyo, we invite you to try AI Suitcase at the expo or Miraikan.”

Driven by Innovation

Lilly Japan’s Simone Thomsen reflects on six years of leading with purpose and ACCJ collaboration.

When Simone Thomsen arrived in Kobe in 2019 to guide Eli Lilly Japan K.K. as president, she fulfilled one of her longtime career goals. Over the past six years, she has been a critical player in the mission of the American Chamber of Commerce in Japan (ACCJ), serving on the Board of Governors, helping launch the Healthcare x Digital (HxD) initiative, and mentoring young professionals. The ACCJ Journal talked to the 23-year Lilly veteran about her experiences in Japan, the value that ACCJ programs provide, and the mission of the President’s Circle company.

Has leading Lilly Japan been what you expected?
It’s been an amazing journey. The number of medical innovations we have brought to Japanese patients is really impressive. I always knew we had a very strong pipeline, but working with the team here has been impressive for me.

Between 2020 and 2024, we launched 11 new products and received 15 new indications for diabetes, oncology, immunology, Alzheimer's disease, and migraine.

Dealing with three years of Covid-19 was not in my plan, but it was important and interesting.

In January 2023, I became the first female chair of the Japan-Based Executive Committee (JBEC) of the Pharmaceutical Research and Manufacturers of America (PhRMA). That was a new experience for me. There’s a lot going on in the healthcare system and policy, which I have worked on with the PhRMA president, JBEC, and other companies.

Did I envision all that in 2019? No. Looking back at that time, I’m proud of what we have done to support Japanese patients, and how we operate at Lilly Japan as a well-developed organization. The company has grown and matured since then. Our colleagues in Japan would say they’re working for a much better organization today compared with six years ago.

How has the pharmaceutical market changed?
In 2019, Japan was the number two pharmaceutical market globally. Now it ranks sixth. One reason for this shift could be the result of the Japanese government policy decisions in recent years. In the past, the pharmaceutical industry in Japan was viewed as a key growth sector. We are ready to partner with policymakers to try to revitalize the industry while also addressing the challenges brought by a super-aging population.

In the decade since 2016, I have seen many negative ad hoc pricing reforms. I believe there have been
approximately 60 such changes.

We’ve also seen the move from biennial to annual price revisions. What that has done to the industry basically is to accelerate the decline of biopharmaceutical innovation in Japan. Globally, our industry has never been more productive. Every year, we’re investing ¥37 trillion just in R&D. Growth over the past couple of years has been around 99 percent. But in Japan, it has remained relatively stable, having grown only six percent. So, in the area of R&D investment, the gap between what is happening globally and in Japan is pretty striking. And it continues to grow.

Currently, 70 percent of global phase-three trials for any type of medicine are not conducted in Japan. That’s an issue for Japanese patients, because innovative medicines are coming to Japan much later. At a time when you have a super-aging population, you really want to have innovation coming to help you deal with the challenges.

As pharma and as Lilly, of course, we are heavily invested; we want to bring back investment. That’s why, as Lilly Japan and as the JBEC chair, we are in conversation to help the government understand that they need to make positive, bolder reforms.

How has the HxD initiative tied into your goals?
At Lilly, we believe that we can find synergy among medicine, science, and technology. It helps us to serve patients better, to create more engagement and better outcomes. So, we have always been looking at new technology and how it can help us. That’s why HxD was perfect for us and we became one of the founding companies in 2020, along with AstraZeneca and Bayer.

For example, we are focusing on how artificial intelligence (AI) and machine learning can be used to quickly screen millions of molecule options to select the best candidates, allowing us then to accelerate clinical development.

During the pandemic, using these digital technologies allowed us basically to keep all of our clinical development programs going, despite the restrictions. I think that showed us what it could look like and what we actually can accomplish with these tools. It also helped us increase accessibility for patients to enroll in clinical trials. That allowed us to drive diversity—you always want to have a diverse population for the clinical trial design.

We are also utilizing automation for quality control. Specifically, we have automated the visual inspection of our incretin pens, which are used to deliver medications. This technology allows us to increase production with enhanced accuracy and efficiency, thereby meeting the growing demand more effectively.

Tying this back to HxD, when the opportunity arose to collaborate with a few other Kansai-based multinationals with similar interests, we said, why not work with the ACCJ on healthcare digitalization. It’s such a big, important focus area.

How vital is inclusion to Lilly?
We advocate for inclusion because it drives innovation. An inclusive culture empowers employees to bring their unique perspectives and capabilities to work, fostering out-of-the-box thinking. As we are an innovation-based company, this approach remains unchanged.

We started focusing on women’s empowerment 16 or 17 years ago. At the moment, about 30 percent of our leadership roles are held by women, and more than 46 percent of executives are female—the highest number in the industry. Today we also have a strong LGBTQ+ ally network at Lilly Japan. We continue to be recognized as a gold PRIDE company, have participated in the Tokyo Rainbow Pride, and this year we took part in the Osaka and Kobe Rainbow Festas.

We have also been accelerating our accessibility strategy to ensure everyone working at Lilly, regardless of whether they have disabilities, has a seamless experience.

Terminology may shift over time, but our commitment to people will not change. It has been part of our recipe for success. If you work in an inclusive culture and feel welcome, heard, respected, and valued, then you feel a sense of belonging at that company. We’re here to remove barriers, and we will continue to do this for employees as well as the people and communities we serve.

How does the ACCJ factor into your work?
The chamber has facilitated the growth of Lilly Japan. As a President’s Circle member, we participate in the networking and learning opportunities provided by the ACCJ, and our brand visibility has increased.

Personally, I have been proud to serve as an ACCJ–Kansai governor on the Board of Governors. I feel it’s a win-win-win for Lilly Japan, me as a leader, and the ACCJ. By participating, you will have the opportunity to collaborate extensively, provide valuable insights, and influence various areas, particularly in advocacy. For our employees, this serves as an excellent occasion for learning and networking.

I mentioned HxD. ACCJ companies emphasized the importance of healthcare digitalization and proposed collaboration on its design. This initiative would not have been undertaken by Lilly without the involvement of the ACCJ and the opportunity to work with other entities.

We believe that company growth comes from continuous individual development. Networking, discussions, events, and learning offer new ideas that can create business opportunities when brought back to the company.

What advice do you have for women in business?
It starts with identifying your goal and being confident. You need to be passionate about that goal, love what you’re doing, and be good at what you’re doing. But you don’t need to be perfect. That’s a trap women sometimes fall into. Build out a network and use it. You will never succeed if you feel you just need to be excellent to move ahead, because you will hit a certain ceiling. Now, 30-plus years into my career, that’s the recipe I feel has worked for me.

When I started my journey in pharmaceuticals, I wanted to become the first female leader of a purpose-driven multinational company in Japan. Funnily enough, that was my objective. In 2019, I came here and that aspiration came true. So, I hope I’m proof that what I’m saying can work.

AI 1988

Look back at how members viewed the potential of AI in 1988 in this reprint from the ACCJ Journal archives

Artificial intelligence (AI) is becoming more and more widely used in Japan. Companies in this country are coming to realize that if they want to stay internationally competitive, they have to incorporate this technology. Davis is a popular contributor to these pages who specializes in high-technology subjects.

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Japan’s large electronics companies are constantly looking for ways to boost the efficiency of their administrative work while searching for new markets so as to diversify their business. AI, a type of sophisticated computer programming that promises to revolutionize many job-related tasks, is catching on among electronics companies and software businesses here, and is also a target of interest among trading houses. All of these enterprises want to establish a foothold in this up-and-coming technical sector so as to enhance their long-term prospects. AI systems in the years to come may make or break certain companies in highly competitive areas of business. It would not be an exaggeration to say that a “mini boom” is being seen today in Japan’s AI sector.

AI systems under development here are intended to address bottlenecks within corporate product-development departments, and they are being marketed to outside customers, sometimes together with special types of data processing equipment. One of the best ways to sell more computer hardware is to market such equipment with an emphasis on higher value-added features, such as the ability to effectively handle AI writing tasks. However, Japanese companies in this field are all well aware that they have to contend with the likes of Symbolics Inc., a Cambridge, Massachusetts, global leader in AI workstations.

Two years ago (in 1986) the Artificial Intelligence Association of Japan was established in Tokyo by electronics companies, telecommunications businesses, software houses, and others interested in new developments in computer programming. The association cultivates exchanges between researchers in various AI-related fields and disseminates technical information to its members. Moreover, the association promotes specialized training of so-called knowledge engineers and other experts needed for the advancement of the new discipline. Establishment of the special association signifies the maturation of the initial commercial phase of AI here.

In contrast to Japan’s AI infrastructure, state-of-the-art American AI work is typically dominated by clusters of small businesses mainly located around major universities. In fact, many Japanese AI specialists have studied at leading US universities. As a result of the difference in the two paradigms, the large electronics enterprises of Japan have tremendous potential resources to devote to AI studies, whereas in the US, venture capital must typically be raised to fund much of the innovative work in AI.

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“The global market for AI systems is likely to grow to as large as much as $10 billion per year sometime between 1995 and 2000, according to Japanese electronics industry estimates.”

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The Japanese approach to the AI business often relies as much on proximity to leading US universities as it does on relationships with the top Japanese universities. In other words, Japanese universities are not major actors within the immediate sphere of AI business here. The paradigms are not without exception, however, because some smaller businesses in Japan, such as CSK Corp., are doing work in the field as well.

As AI is widely considered a promising growth market within the information processing sector, electronics companies are offering products that will allow users to develop their own AI systems, such as so-called expert systems. This customized programming is developed on the basis of experts’ knowledge; hence expert systems comprise handy tools for novices—so that they may easily draw upon the comprehensive knowledge of specialists to assist them in complicated tasks, such as writing specific types of software programs.

The global market for AI systems is likely to grow to as large as much as $10 billion per year sometime between 1995 and 2000, according to Japanese electronics industry estimates. The leading AI language today is LISP (LISt processor), and it is widely expected to retain its front-running position. Four of the largest AI applications expected in the mid-to-late 1990s are those for integrated circuit design assistance, manufacture planning, financial planning, as well as computer systems diagnosis and maintenance.

An example of a medical application of AI systems is the so-called RINGS program—rheumatology information counseling system—developed recently by Nippon Telegraph and Telephone Corp. and a medical college in Tokyo. The system is used by those suffering from rheumatism to help them in diagnosing minor problems over the telephone. When more serious problems arise, doctors are to be consulted. A variety of other medical-related AI systems are now under development, in part because the medical sector is likely to see rapid growth due to the aging of Japan’s population.

In the area of nuclear power plant operations, a group of Japanese enterprises is developing an expert system to enhance the safety of pressurized water reactors (PWRs). The LISP-based expert system is intended for use in new types of PWRs to be operated by Kansai Electric Power Co., Inc. and three other electric utilities.

Greater safety in operating nuclear plants can lead to enhanced profits for the utility companies, as they will not need to shut down reactors for prolonged periods in order to do repairs, precautionary tests or other types of maintenance.

The most prominent of Japan’s AI-related development programs is the so-called fifth-generation computer project, which is administered by the Institute for New Generation Computer Technology (ICOT). The institute was established in 1981 under funding from the Ministry of International Trade and Industry’s (MITI’s) Machinery and Information Industries Bureau.

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“Although today’s AI systems can only cope with surface level knowledge, those of the year 2000 are likely to be capable of dealing with more abstract forms of knowledge. ”

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Altogether, there are nine private companies participating in the project. Researchers based at MITI’s Electrotechnical Laboratory (ETL) in Tsukuba, Ibaraki Prefecture, are also involved. Moreover, the ETL, which is administered by MITI’s Agency of Industrial Science and Technology, is doing its own independent work in the field. Six to eight researchers from each of the electronics companies work at the ICOT center in Tokyo, and then only for periods generally ranging from two to four years.

When the project began in 1982, it was the subject of considerable attention throughout the world, due to its bold proposals and the perceived threat that it posed to the American and European computer software industries. However, recently it has not attracted much interest because Americans and Europeans have been less than impressed by the meager results of the project. US interest in the ICOT project led to the establishment of Microelectronics and Computer Technology Corp., a research consortium headquartered in Austin, Texas.

AI systems have a long way to go before they reach a phase of maturity. Although today’s AI systems can only cope with surface level knowledge, those of the year 2000 are likely to be capable of dealing with more abstract forms of knowledge. Advances in the memory capacity of computer microchips, parallel processing capabilities of computers, data processing speeds, and knowledge bases will accelerate the progress of the AI business sector.

Let us hope that people will always be able to keep the upper hand of control on such advanced tools as AI systems, and that the sophisticated tools won’t ever “discard” the humans they are supposed to be helping.

Alliance Maker

ACCJ Person of the Year Rahm Emanuel reflects on three years as the US ambassador to Japan

After being tapped by US President Joe Biden to serve as the nation’s ambassador to Japan, Rahm Emanuel arrived in Tokyo in January 2022 at a pivotal moment for the world. The Covid-19 pandemic was raging, Japan’s border closures were wreaking havoc on the business community, and the ripple effects were exposing vulnerabilities across the region.

Strengthening the bilateral relationship was essential. During his time as chief of mission, Emanuel has tirelessly worked to build bonds that foster a prosperous future not only for the United States and Japan, but for the entire Indo–Pacific.

In recognition of his strong support, the American Chamber of Commerce in Japan named Emanuel its 2024 Person of the Year and honored him with a special event on October 23 at Tokyo American Club.

As he prepares to hand over the reins to a new envoy, the 31st US ambassador to Japan talks to The ACCJ Journal about the experience, the importance of the alliance, and the future.

How can the business community strengthen the US–Japan alliance?

The US–Japan alliance is far from limited to our far-reaching security cooperation and the alliance’s place at the heart of a new latticework of security partnerships across the Indo–Pacific. That, of course, is fundamental to our relationship and to our collective deterrence in the region, but the United States and Japan have made strides on every front over the past three years.

As the largest foreign direct investor in each other’s economies, our two nations are persistently pursuing opportunities to forge closer links in business and research. In the fast-evolving environment of emerging technologies, our tech firms and academic institutions have the opportunity to lead the way in the research and development of artificial intelligence (AI), quantum computing, semiconductors, and other cutting-edge scientific fields.

But just as important as technological advances are our measures to protect them. This means tightening our export controls to ensure that technologies such as advanced AI chips don’t end up in the hands of adversaries with malign intentions. Ultimately, this is about securing our intellectual property, our economies, and the jobs of tomorrow.

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“As the largest foreign direct investor in each other’s economies, our two nations are persistently pursuing opportunities to forge closer links in business and research.”

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Of course, we need to ensure we have the relevant education programs in place to train the workers who will be shaping these 21st-century technologies. The United States and Japan have made real progress in this area through partnerships between tech companies and universities. We now need to keep up the momentum by continuing to expand and enhance these talent pipelines.

Investment is the fuel of great business ideas and ambitious thinking. Since the United States has a flourishing venture capital ecosystem, there are boundless opportunities for cooperation in this area between US and Japanese companies. Japan has long been a source of innovation and invention. It’s just a matter of finding the funding to ensure those ideas can take flight.

One area with huge potential is Japan’s biotechnology sector. An increasing number of start-ups are drawing interest from investors here. With greater collaboration and support from US biotech enterprises, and investors with expertise in the sector, Japan can become a leading biotech hub, not just in Asia but globally.

How do talent hurdles and gaps in DEI and marriage equality impact the alliance’s economic strength?

Japan faces the dual challenges of a rapidly aging society and a declining birthrate, which means that the country doesn’t have a person or a talent to lose when it comes to winning the 21st century.

Every country, including the United States and Japan, has a long way to go in fully implementing the principles of diversity, equity, inclusion, and accessibility. But if we are to build well-functioning societies and thriving economies, we need to leverage all our assets. It’s about properly and fairly employing the people we have and embracing an ethos of lifelong learning, upskilling, and retraining.

How can we best collaborate on AI?

Looking at the speed at which AI is being developed and adopted, there is no time to lose in ensuring the United States, Japan, and our allies remain at the forefront of this technology. It is imperative that we set the pace in its continuing evolution and in establishing a fully functioning, well-regulated ecosystem that is aligned with our laws and interests. The sector is already seeing a lot of research and development cooperation and cross-border investment between the United States and Japan. Having talked to many major players in the field, I am confident that this trend will only grow.

During former Prime Minister [Fumio] Kishida’s state visit to Washington in April, we saw the launch of an initiative between US and Japanese universities and private sector partners in both countries to boost AI-focused research and workforce development.

The partnerships between Carnegie Mellon and Keio Universities, and between the Universities of Washington and Tsukuba, are supported by $110 million in investment from Microsoft and other US concerns as well as a consortium of nine Japanese companies.

Similar partnerships between Japanese and US universities and leading tech companies were launched in the fields of semiconductors and quantum computing last year. Both programs are about making groundbreaking advances that will have global benefits while educating the workforce of tomorrow.

Empowering our best and brightest in these critical fields will pay dividends both for our two nations and the world.

How can cooperation on climate change and clean energy be strengthened?

Two of the greatest challenges facing us all are climate change and energy security. Just as in so many other sectors, the United States and Japan are well placed to combine their respective scientific expertise in the development of new and cleaner energy technologies.

Earlier this year, Japan became the first international collaborator in America’s Floating Offshore Wind Shot initiative, which aims to reduce costs associated with the energy source. Having committed ¥120 billion to the development of wind technology and launching the Floating Offshore Wind Technology Research Association (FLOWRA) this year, Japan clearly recognizes the enormous potential of offshore wind.

Our two countries are also partnering on advanced small nuclear reactor technology, for which demand is only set to increase as we build more data centers to power generative AI. Meanwhile, Japan’s largely untapped geothermal energy resources hold tremendous opportunities for further collaboration between Japanese and US energy corporations.

These areas of private sector cooperation and investment not only reinforce our energy security but also offer us opportunities for growth in other markets, as we join forces to help developing countries devise their own clean energy solutions and infrastructures.

How important has the US–Japan Year of Tourism been following the border closures?

While the news in Japan is dominated by the record-breaking numbers of inbound tourists, the number of Japanese tourists visiting the United States continues to rise following the pandemic. Destinations such as Hawaii and New York City remain extremely popular, and, thanks to a certain Japanese baseball player by the name of Shohei Ohtani, Los Angeles—and Dodger Stadium, in particular—welcomed thousands of fans over the course of the MLB season this year. With Shohei recently named the National League’s MVP, we can expect to see even more Japanese travelers heading to California and elsewhere in the States when the 2025 season kicks off.

There are few places in the world with the sheer diversity of natural wonders and cultural and culinary experiences. Next year’s Expo 2025 in Osaka will be a chance to truly showcase all that the United States has to offer. Our interactive pavilion is designed to inspire visitors to learn more about the United States, explore the country in person, and even consider studying there. We expect the expo to help boost visitor numbers to the United States in 2025 and in the years ahead.

The recent agreement to establish Japan as our 18th Global Entry partner country couldn’t come at a better time, and is sure to enhance the travel experience of Japanese visitors to the United States. Since Japan is our largest foreign direct investor, and Japanese companies employ nearly a million Americans, it makes good business sense to make entry as straightforward and as stress-free as possible for pre-approved visitors. This latest agreement is another reflection of the strength of our bilateral ties.

How important was the Biden–Kishida summit?

[Former] Prime Minister Kishida’s state visit in April ushered in a new era for the alliance. It cemented the work we had been doing for the previous two years to deepen our cooperation in a multitude of areas. Security might be a key pillar of our partnership, but we are leveraging our strengths to drive innovation and growth on every front, from energy and education to science and space exploration. The United States and Japan, as President Biden reiterated during the state visit, are global partners whose endeavors and achievements are being felt across the Indo–Pacific and beyond.

The alliance is now at the heart of a new latticework of multilateral partnerships across the Indo–Pacific. By replacing our “hub-and-spoke” architecture of regional bilateral relationships with multilateral cooperation and consensus, we have built an energized environment of trust and dynamism in the region.

The historic trilateral partnerships we forged with Japan and South Korea and with Japan and the Philippines—as well as the work of the Quad strategic grouping of the United States, Japan, India, and Australia—boost our deterrence in the Indo–Pacific while providing renewed momentum for greater cooperation and integration between countries and economies. One thing is for certain: There is much more to come in the years ahead.

“What we do over the next three years will determine our presence and our vision over the next 30 in the region.” That line from my confirmation hearing in 2021 turned out to be my guiding principle during my time here.

How might Japan’s new political landscape impact bilateral cooperation?

Our efforts over the past three years to strengthen the US–Japan alliance, and to reassure allies and partners that the United States is a permanent Pacific power and presence, have received universal support from across the political spectrum on both sides of the Pacific.

There is a clear understanding in Japan and in the United States that the alliance forms the bedrock of our collective deterrence in the region, and that continued cooperation with other regional partners and allies is critical to confronting a China that seems intent on dominating its neighbors and forcing the region to play by its rules.

How has Japan changed your view of America?

Distance has given me perspective on both America’s strengths and challenges. My first few weeks in Tokyo were certainly eye-opening. Seeing people leave valuables on tables or benches while they went to get coffee or jog around the Imperial Palace revealed a level of social trust I had never witnessed before.

Equally bewildering—but beautiful—was the sight of young schoolchildren walking alone to and from school each day, with cars coming to a complete stop when children raised their hands in the air before crossing the road. Those scenes highlight to me how much kids in the United States have been robbed of their innocence. We make so many compromises and concessions for our safety in America. It’s been liberating to be free of that constant and nagging concern.

What I have been repeatedly reminded of while here is the dynamism of America’s entrepreneurial ecosystem. Our unique and unrivaled environment of venture capital firms and angel investors is what drives innovation and invention.

Our university research programs and private-sector tie-ups are unmatched, too. It’s no surprise that so many entrepreneurs, start-ups, and scientists gravitate to the United States—a place that embraces risk, encourages expression, and champions big thinking.

What is your message to the next ambassador?

The past three years have been about shoring up alliances, building multilateral partnerships, and strengthening our security commitments. With a firm framework now in place, the years and decades ahead will be about developing those strategic relationships and initiatives further while ensuring that the stability of the Indo–Pacific is protected and its economic vibrancy preserved.