National subsidies can be used to introduce generative AI, AI-OCR, and AI-embedded business systems and labor-saving equipment. They cover part of the cost (often 1/2 to 2/3) with no repayment required, but there is a selection review, and you will not pass without knowing the conditions and application tips. This article organizes the main subsidies usable for adopting AI in 2026 by list, subsidy cap, rough adoption rate, and conditions, and explains points to raise your adoption rate.
Main subsidies usable for adopting AI (list)
| Subsidy | Subsidy cap | Subsidy rate | Main AI uses |
|---|---|---|---|
| Digitalization / AI Adoption Subsidy (formerly IT Introduction Subsidy) | Up to ¥4.5 million | 1/2 to 3/4 | Adopting IT tools such as generative AI and AI-OCR |
| SME Labor-Saving Investment Subsidy | Up to ¥100 million | 1/2 to 2/3 | Labor-saving equipment using AI and robots |
| Monozukuri (Manufacturing) Subsidy | Up to tens of millions of yen | 1/2 to 2/3 | Using and developing AI for products and processes |
| SME New Business Expansion Subsidy | Up to tens of millions of yen | 1/2 | New businesses and new fields using AI |
| Small Business Sustainability Subsidy | Up to ¥2 million | 2/3 to 3/4 | Channel development and operational efficiency with AI (small scale) |
* Caps and subsidy rates vary by category and business size. Always check the latest public-offering guidelines.
(1) Digitalization / AI Adoption Subsidy (formerly IT Introduction Subsidy)
From fiscal 2026, the "IT Introduction Subsidy" was renamed the "Digitalization / AI Adoption Subsidy." It supports the introduction of IT tools that include AI, such as generative AI, AI-OCR, and chatbots[Small and Medium Enterprise Agency (in Japanese)].
・The subsidy cap is up to ¥4.5 million. Some categories cover not only software but also hardware such as PCs, tablets, and POS registers, and maintenance
・The basic approach is to adopt IT tools registered in advance with the secretariat via a registered support provider (vendor)
・Electronic application with a GBizID Prime is required
(2) SME Labor-Saving Investment Subsidy (the top choice for adopting AI and robots)
To resolve labor shortages and improve productivity, this supports the introduction of labor-saving equipment using AI, robots, and the like. It is the program with the largest amount in the AI field, at up to ¥100 million with a subsidy rate of up to 2/3[Labor-Saving Investment Subsidy (in Japanese)].
| Type | Details |
|---|---|
| Catalog order type | Choose and adopt registered general-purpose products (IoT, robots, etc.) from a catalog. Relatively easy to pass if you meet the requirements |
| General type | Individually build equipment and systems tailored to your site. Requires a well-developed business plan |
・Subsidy rate: SMEs 1/2, small businesses and restructuring operators 2/3
・Cap: varies by number of employees (e.g., ¥80 million for 101 or more employees; up to ¥100 million with the large wage-increase special provision)
・Adoption rate: 69.3% for the general type, 4th round (1,456 of 2,100 applicants adopted). Varies by round
(3) Monozukuri (Manufacturing) Subsidy
It can be used for developing innovative products and services and improving production processes, and covers things like developing AI-embedded products and automating inspection. The subsidy amount ranges from a few million to tens of millions of yen depending on the category. The quality of the business plan determines adoption.
(4) SME New Business Expansion Subsidy
A program supporting expansion into new markets and new fields (positioned as a successor to the former Business Restructuring Subsidy). It can be used to launch new businesses that utilize AI. Because it is a new program, checking the public-offering guidelines and adoption trends is important.
(5) Small Business Sustainability Subsidy
For small businesses with few employees. It can be used for channel development and operational efficiency with AI tools (advertising, website creation, reservation systems, etc.). The cap is small at up to ¥2 million, but the adoption rate is relatively high, making it an easy-to-use program for sole proprietors too.
Conditions and tips to raise your adoption rate
- Obtain a GBizID Prime early: It is essential for electronic application. Issuance takes 1 to 2 weeks.
- Meet the requirements in the public-offering guidelines: Check bonus-point and mandatory requirements such as wage increases and improving added value.
- Make your business plan concrete with figures: Show current issues → AI adoption → expected effects (e.g., productivity up by ◯%) quantitatively.
- Go after the bonus-point items: Declaring wage increases, involvement of a certified management innovation support agency, DX certification, and the like.
- Do not order or contract before adoption: Orders placed before the grant decision fall outside the scope.
There is no program that can guarantee subsidy adoption. Be wary of operators who demand high success fees or advance payments. For consultation, public counters such as the Society of Commerce and Industry, the Chamber of Commerce and Industry, and certified support agencies are reassuring.
Taxes when you receive a subsidy (important)
Subsidies and grants are in principle taxable income (miscellaneous revenue in business income, etc.). Your profit swells in the year you receive it and is taxed, but if you bought a fixed asset with the subsidy, a blue-return filer can defer the tax to the following year or later through compression bookkeeping (asset value reduction entry)[National Tax Agency No.5765]. Furthermore, note that many subsidies are paid afterward (settlement payment), so you need to advance the funds with your own money for a time. For subsidies in general, also see the Guide to subsidies and grants.
FAQ
Can sole proprietors also use AI subsidies?
Yes. Sole proprietors are also eligible for the Digitalization / AI Adoption Subsidy and the Small Business Sustainability Subsidy. First obtain a GBizID Prime and check the eligibility requirements in the public-offering guidelines.
Are usage fees for generative AI (ChatGPT, etc.) subsidy-eligible?
Generative-AI-related services that are IT tools registered with the secretariat can be eligible for the Digitalization / AI Adoption Subsidy. Because how monthly usage fees are treated differs by category and fiscal year, check the public-offering guidelines.
What is the adoption rate?
It varies by program and round. As an example, the 4th round of the Labor-Saving Investment Subsidy (general type) was 69.3%. Because it varies greatly with meeting the requirements and the quality of the business plan, treat past results as a guide.
Is tax charged on a subsidy?
In principle it becomes taxable income. If you put it toward purchasing a fixed asset, a blue-return filer can defer the tax through compression bookkeeping (asset value reduction entry). Keep in mind that receipt is basically paid afterward and requires advancing the funds.
Summary
Reference links (sources)
This article is based on materials from the following public bodies (neutral, primary sources). Because the program, requirements, and adoption rates change by round, please check the latest public-offering guidelines before applying.
- Small and Medium Enterprise Agency — Digitalization / AI Adoption Subsidy 2026 public-offering guidelines (in Japanese)
- SME Labor-Saving Investment Subsidy official site (in Japanese)
- Monozukuri Subsidy Project official homepage (in Japanese)
- Mirasapo plus (search for subsidies and grants) (in Japanese)
- National Tax Agency No.5765 Compression bookkeeping for subsidies and the like (in Japanese)
* This article is general information, not advice on applications or tax matters. For individual decisions, please confirm with each secretariat, a certified support agency, or a tax accountant.