Japan's animation industry is increasingly embracing AI technology, despite rising concerns regarding copyright infringement and job security for artists.

The integration of AI into anime production is already underway, with the first AI-powered anime, 'Twins Hinahima,' released in March 2025, following earlier projects that utilized AI-generated artwork.

Production studios, such as K&K Design, are adopting AI tools like Stable Diffusion to streamline the animation process, significantly reducing the time required to create clips.

The anime industry is grappling with a labor shortage due to poor working conditions, which has led to many workers earning less than minimum wage, prompting a search for AI solutions to fill these gaps.

While around 60% of artists express fears about job loss due to AI, some industry experts argue that AI will act more as a supportive tool rather than a replacement for human creativity.

Experts predict that AI will transform the film industry, potentially democratizing filmmaking and shifting focus away from large-scale productions, while also presenting challenges for actors and other creative professionals.

This trend of using AI in filmmaking is not limited to Japan; filmmakers in Hollywood are also experimenting with AI tools for tasks like script writing and production management, emphasizing the need for human involvement in creative roles.

The release of an AI tool that mimics the style of renowned filmmaker Hayao Miyazaki has reignited debates about artists' rights, especially since he previously expressed disdain for AI-generated content.

A 2023 survey indicated that 94% of Japanese artists are concerned about AI infringing on their copyrights, underscoring industry worries about the impact of AI on creative rights.

Legislative efforts, such as the NO FAKES act in the US Congress, aim to address unauthorized AI replicas, reflecting ongoing tensions between technology and traditional artistic practices.

Japan's copyright laws, amended in 2019, permit the use of copyrighted materials to train AI without the consent of copyright holders, a more lenient stance than in the EU or US, aimed at attracting AI investments.

The Japanese Agency for Cultural Affairs has clarified that copyright protections apply if AI use harms the interests of copyright holders, though enforcing these protections remains a challenge.