Former Bank of Japan Governor Shirakawa: Demographics and Economic Growth are Interdependent; AI Can Help Address Aging Challenges

On May 18, the 2026 Tsinghua PBCSF Global Finance Forum was held in Chengdu, Sichuan, from May 17 to 20. The forum's theme was "Global Financial Governance in a Changing World: New Challenges, New Opportunities, New Developments." In a high-level dialogue session, Zhu Min, former Vice President of the International Monetary Fund and former Deputy Governor of the People's Bank of China; Michael Spence, 2001 Nobel Laureate in Economics and Philip H. Knight Professor Emeritus of Management at Stanford Graduate School of Business; and Masaaki Shirakawa, former Governor of the Bank of Japan, engaged in an in-depth discussion on various topics.

Addressing the topic of "aging," Shirakawa pointed out that demographic changes and economic growth are interdependent. If the economy can maintain positive growth, there is no need to be overly concerned about population decline.

Shirakawa also noted that, based on Japan's experience, negative population growth transmits through multiple channels, directly reducing labor productivity and actual output growth. He emphasized that both society and policymakers need to be fully prepared to address the interconnected effects of labor productivity and demographic changes.

Shirakawa stated that AI has immense potential and can be applied to almost every industry and field. With limited resources, countries should focus on developing AI in areas where they have a comparative advantage. He pointed out that Japan faces pressures from aging and population decline, with rapid aging bringing numerous social challenges. AI can provide assistance in solving these problems. In Japan, caregivers in nursing homes face high work intensity and physical burdens, and using AI technology to monitor behavioral changes in the elderly and dementia patients has shown significant effectiveness. Currently, many nursing homes in Japan have begun piloting AI applications. Although still in the early stages, AI is already helping to improve elderly care services. He recommended that countries identify suitable areas for AI application to allow AI to play a positive role in addressing demographic challenges.