The government has pledged to focus its support policies on physical artificial intelligence(AI), which integrates AI with machines such as robots and automobiles, with a view to making the country the world leader in physical AI.

In a growth strategy announced on Friday, the Ministry of Economy and Finance outlined a plan to make 2026 the year to concentrate investment in the AI paradigm shift so the nation’s potential growth rate can rebound from the current upper one percent range.

The government will accelerate efforts to establish infrastructure such as a national AI computing center and a special-purpose company it intends to form in cooperation with the private sector.

The plan calls for the center to break ground within the year, and support for physical AI is to focus on robots, automobiles, shipbuilding, home appliances, drones, factories and semiconductors.

The government will push for a project to develop humanoid robots, create a demonstration city for autonomous driving pilot programs, and increase the number of AI-based intelligent factories from the current 120 to 430.

In the service sector, AI will first be adopted in three administrative areas where demand is highest: employment, tax payments and new drug reviews.