The economic effect of the usage of AI in the anime industry in Japan

Anime in Japan: its roots and its leaves

Tracing its roots back to the early 20th century, this beloved form of media has gained recognition worldwide over the past half a decade. The cultural and economic value of animation in Japan cannot be understated. It has emerged as a subculture, creating a space for expression for artists and tying their messages to the audiences’ hearts. Anime has transcended borders and seen a global surge in popularity, acting as a window for people all around the world and offering them a glimpse into Japanese culture. 

According to www.worldmetrics.org , “Around 50-60% of the global animation content production comes from Japan. This statistic underscores Japan’s position as a powerhouse in the animation industry and reflects the country’s rich history and innovation in producing high-quality animated content.”

A statistical analysis 

• In 2022, Japan’s GDP amounted to $4,256.41 billion, out of which 5.28% was owed to the contribution of the anime industry. $2.26 billion were generated by the economic powerhouse that is the anime industry. 
  

• Over 70% Japan’s $12.3 billion yen annual music sales are related to anime, highlighting its significance in driving the music sales in the country, among its impacts on the economy.

• A 65.91% year-on-year rise in the Internet Distribution Segment in Japan, reflecting the impact of anime content distribution through online platforms.

AI : its surge in the anime industry

This distinct style of animation has not escaped the touch of an influential technology - AI. Generative AI gives birth to problems larger than copyright liability (which, in and of itself is quite a serious concern), such as the need for fewer jobs! Due to the benefits of cost reduction and efficiency it provides in the animation production process, it is a remarkable and almost essential tool to have in an anime studio nowadays. 

Animators and voice actors can have their jobs made much easier by the advent of the AI age, and this article aims to highlight how exactly this affects the economy of Japan as a whole. 

While not a replacement for human creativity and merely intended to be used as a means for collaboration and experimentation, many artists fear that it will lead to a decrease in demand for illustrations and requests will disappear. 

The integration of AI in the anime industry has the potential to unlock 148.7 trillion yen in Japan (about 25% of the country’s GDP in 2022!). However, along with this, considerable changes in the job availability, job roles and employment rates in the anime sector are foreseen, with AI already being used heavily in the production of animes such as ‘The Dog and The Boy’, which claimed to resort to the usage of AI in production due to labor shortage. 

A statistical analysis 

• In 2021, around 75% of the anime studios in Japan invested in AI technology. 

• According to world metrics, AI adopted in anime has reduced production time by about 50%, contributes to 30% of the production process in anime industry, has reportedly increased anime production rate by 25% in 2021.

• Its participation in anime script writing has reported as high as 15% with than 50% of Japanese productions use AI technologies in the planning phase.

A notable increase in revenue generated by the anime industry in the year 2022 coincides with the period of time when AI began to be adopted in order to combat the labor intensive nature of the animation process and the challenges faced by animators, among other issues. 

Simultaneously, it gave rise to concerns of replacement of animators due to the increased efficiency at lesser production cost provided by the usage of AI.

Conclusion

According to the academyofanimeandart, Japan's animation industry is responsible for more than 50,000 jobs, making it the largest animation market in the Asia Pacific region and one of the biggest producers of animated series.  Additionally, the Bureau of Labor Statistics reports at 16% growth in the animator profession by 2023, indicating that the increased usage of AI is economically beneficial for the industry.

Lastly, we observe that integration of AI in anime lead to an approximate increase of 10% in the global viewership from 2019-2020. Combining this newfound efficiency with the growth of the anime industry in Japan is projected to have a positive effect on Japan’s GDP in the coming years.

It remains that the impact on employment and the creative aspects of anime production are a concern that need to be addressed.