The Bank of Japan (BOJ) is paying closer attention to the economic benefits coming from the global artificial intelligence boom as it weighs the impact of higher energy prices on the country’s economy.
According to Bloomberg, one board member said strong overseas demand for AI-related products is helping soften the effect of rising crude oil prices.
The official noted that while higher oil costs normally hurt Japan by increasing import bills, increasing demand linked to AI is providing support through exports and industrial activity. The comments suggest policymakers are becoming less worried about an economic slowdown than they were earlier this year.
BOJ Deputy Governor Ryozo Himino reiterated a similar view in remarks to parliament on June 19, saying policymakers had previously expected higher oil prices to put pressure on growth by worsening Japan’s trade position.
Japan benefits from the AI supply chain
Although Japan does not produce the most advanced AI chips, its companies play an important role in the global semiconductor industry.
Japanese firms supply key materials, manufacturing equipment, and components used to produce chips that power AI systems. As spending on data centres and AI infrastructure rises, demand for those products has also increased.
Recent trade data shows that demand. BOJ figures show Japan’s export price index rose 11.7% in May from a year earlier, the largest increase since 1979. Export prices for electrical and electronic products climbed 23.9%, the biggest increase since comparable records began in 1976 per Bloomberg.
AI spending reaches crypto markets too
The effects of the AI boom are also being felt across crypto markets. Several blockchain projects are tied to AI computing, decentralized data storage, and digital infrastructure. Investors have increasingly looked at these sectors as demand for computing power continues to grow.
The connection matters because many of the same forces driving AI spending are also creating opportunities for crypto projects focused on infrastructure. More data centres, more chips, and more computing resources could increase demand for blockchain networks that support AI-related services.
Meanwhile, the bank raised its key money market policy and adjusted interest rates in a 7–1 vote, marking a clearer step toward tighter monetary conditions. The central bank will now guide the uncollateralised overnight call rate to around 1.0 per cent for the coming period.
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