61% of Local Governments Exceed 100 Hours of Overtime: Exclusive Report Released for Mayors and Officials to Fill the 'Implementation Gap' in Regional Economic Policy

## Bridging the 'Implementation Gap' in Regional Economic Policy for the 'Regional Revitalization 2.0' Era

The 'AX for Revenue Institute,' an AI Transformation research body under AlphaDrive Inc., has established the 'Regional AX Promotion Organization' to drive AX initiatives in local economies. In collaboration with the AlphaDrive Regional Economic Research Institute, they have released a white paper titled 'Regional AX: Regional Economic Policy Report for the Regional Revitalization 2.0 Era.' This report is distributed exclusively to mayors, national and local legislators, and local government officials.

### Structural Challenges in Local Government

According to the report's independent analysis based on FY2024 Ministry of Internal Affairs and Communications data, 61% of the 1,722 municipalities are facing over 100 hours of overtime per year. While the government has prepared a budget of 1 trillion yen for 'Regional Revitalization 2.0' with grants reaching 1,580 organizations, a 'gap' remains in local government operations—the lack of implementation methods to convert these budgets into value creation for the local economy.

### 'Regional AX' as the Core Concept

This report proposes 'Regional AX (Regional AI Transformation)' as a key concept for regional economic policy in the 2.0 era. It centers on 'Revenue Evolution AI,' distinct from 'Efficiency AI' (typical regional DX). By leveraging AI to create 'forms that do not yet exist,' it aims to create new value, revenue sources, and customer touchpoints for local businesses.

### Practical Implementation Solutions

To fill the structural gaps faced by local governments, the report provides implementation solutions for three main issues:

1. **Policy Vocabulary Gap**: Translating and systematizing official government concepts into the context of regional economies.
2. **Implementation Gap**: Offering 11 business design formats that can be directly applied to FY2027 budget requests.
3. **Talent Gap**: Presenting a path to train 'AX Architects' through a five-party collaboration model among municipalities, universities, regional banks, chambers of commerce, and local companies.

The report is grounded in the analysis of eight official government documents and is written to maintain political neutrality. Each format comprehensively details project overviews, target industries, funding sources, KPIs, and implementation schemes, serving as a practical tool for all policy practitioners.