The US and Japan Cooperative AI Research and Development

This paper examines the emerging relationship between the US and Japan with respect to A r t i f i c i a l Intelligence and the signif icant trend towards US-Japan cooperative Al research and development. This trend is underscored by the increasing investment by both nations to develop massive 5th generation computer technology. The importance of the US and Japan's relationship is amplified by these two nations being the world's largest high technology producers and trading partners. One must fu l l y appreciate the future course of events as the two nations open up new markets, estimated at tens of bi l l ions of dollars in Al hardware, software and related services by the 1990's. Al has greater implications for collaboration versus ruthless competition, as in other markets, due to the uniqueness of opportunity Al offers the US and Japan for mutual growth. Al wi l l offer unique ways for the US and Japan to grow closer with greater understanding of two otherwise extremely different social and economic systems. This does not diminish the importance of other countries growing closer through Al in this way, but rather demonstrates the greatest example of cooperation with the greatest total economic rewards. CHANGES IN US-JAPAN HIGH TECH RELATIONS Japan has demonstrated a most effective competitive strategy in most marketplaces, which has, as some observe, threatened the basic underpinnings of the US economy. More speci f ical ly, the great desire by Japanese firms to be number one has created an overall uneasiness for most US firms about the future. The last few years has seen a growing discontent from Americans towards Japan and recently resulted in the strongest Post-War trade protection backlash ever witnessed towards Japan. Thankfully, the leaders in both countries have gone to great lengths to avert a trade war, whose consequences would only prove destructive to each economy. This latest round of measures shows an unprecedented willingness from Japan to protect good relations with the US. Prime Minister Nakasone is urging the l iberalization of freer trade to benefit the trade imbalance. The r isk, however, 1s that by the US using threats towards increasing diplomatic and economic relations, trust and stabi l i ty may be lost in the process. This i l lustrates the basic need to create more effective tools for the US and Japanese government and commercial interests to better interact. The f i t for Al here is ideal. As our overall markets continue to grow and overlap, there becomes a higher price for fai lure and a greater reward for successful negotiation and cooperation. This is one of the original concepts for Al technology. To gain better insight into the depth of this trend in our changing high technology relations, the last 30 years are revealing. When Japan was rebuilding i ts economy after the War, many US firms licensed technology to their industrial counterparts. The licensing of technology was a natural f i t for both sides, but the consequences were unimagined. This period shows in excess of 38,000 licenses transacted from the US to Japan. The chart below i l lustrates the increase and then leveling-off of US originated technology licenses to Japan. The historic curve is in direct relation to Japan's economic rebuilding and expansion to the gradual decrease in dependence on foreign technology, as internal innovation became more practical and effective.