Okayama City Launches Subsidy Program Offering Up to JPY 7.5 Million for SME Adoption of IoT and AI

To enhance the labor productivity and competitiveness of its local small and medium-sized enterprises (SMEs) through digitalization and automation, Okayama City is now accepting applications for its "Subsidy for Supporting the Introduction of Advanced Technologies such as IoT and AI." This program provides financial assistance for costs associated with implementing IoT, introducing AI technology, and utilizing robots in facilities like factories and stores.

The subsidy is divided into two main categories.

The "Preliminary Verification Project" supports initiatives that verify the potential effectiveness and feasibility of introducing IoT, AI, and robots to improve labor productivity. The subsidy rate for this is 1/2 of eligible expenses, with a maximum limit of JPY 1.5 million.

The "Verified Advanced Technology Introduction Project" is for businesses that have already confirmed the effectiveness and feasibility of a technology through a preliminary verification. This subsidy supports the full-scale implementation of IoT, AI, or robotics to boost productivity. Eligible applicants include businesses that conducted a verification project in the previous fiscal year or those recognized as having performed equivalent verification work independently. The subsidy rate is 1/3 of eligible expenses, with a maximum limit of JPY 7.5 million.

Eligible applicants are SMEs with a head office or a primary place of business (such as a factory, office, or store) located within Okayama City.

A wide range of costs are covered, including outsourcing fees, commissions, professional fees, equipment and system purchases, rent/lease/usage fees, raw material costs, and transportation expenses, provided they are related to the eligible project.

The application deadlines for both the verification and implementation subsidies are as follows: the first round is June 30, 2026; the second is August 31, 2026; and subsequent deadlines will occur at the end of each month from September 2026 onward.

To apply, businesses must submit an application form in accordance with the guidelines and regulations available on the Okayama City official website. More details can be found at the following URLs: - Preliminary Verification Project: https://www.city.okayama.jp/jigyosha/0000081277.html - Verified Advanced Technology Introduction Project: https://www.city.okayama.jp/jigyosha/0000081279.html

The city also provides examples of past projects, such as networking machine tools for IoT integration, replacing manual visual inspections with AI image sensors, and connecting metalworking processes with robots to significantly reduce processing time.