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BOJ’s Ueda says Japan could do well with AI replacing labor, given existing shortages

By Thomson Reuters Nov 6, 2026 | 11:05 AM

WASHINGTON, Nov 6 (Reuters) – Bank of Japan Governor Kazuo Ueda ​on Friday ‌said rapid advancements in artificial intelligence had provided a positive demand ‌shock ​for the ⁠Japanese economy, but ⁠supply side factors would also need to be studied.

Ueda, speaking ​at an event hosted by ⁠the International ⁠Monetary Fund, said ​Japan could do ​well with AI replacing labor ‌given its significant labor shortages.

He said he worried ⁠about cyber risks in terms of financial stability, adding ⁠that ‌some small ⁠banks and small ​firms ‌had not done ​enough to ⁠guard against such risks.

(Reporting by Andrea Shalal and Leika Kihara; Editing by Chizu ​Nomiyama)