Advances in artificial intelligence (AI) have presented Japanese defense and security institutions responsible for manual wargaming and policy simulation with several interesting challenges and opportunities. A major benefit of AI is that it accelerates innovation in both commercial and defense industries. There are two downsides, how- ever, that must be handled to gain the benefits of AI. First are the physical, psychological, and resource stresses imposed on staff in the relevant institutions. The second challenge occurs when the speed of innovation outpaces the decision cycle time of the institutional leadership responsible for research and development investments, policy development, strategic planning, and coordinating with other government branches and allies and partners. The risk is that decisions to take advantage of AI innovations are made hurriedly and poorly or are made at the bureaucratically established schedule and fail to best exploit AI-based innovations. This article argues that Japan should first realize that both its adversaries and security partners are trying to introduce AI and that Japan should proactively work, particularly with the United States, to take advantage of the potential benefits of AI through wargaming. To do so, Japan must properly embed wargaming within institutions and its research process cycles. This is not easy, but it will improve institutional decision making and wargaming with other institutions nationally and with allies internationally, especially when Japan's security environment has increasingly been deteriorating in the face of rising military challenges, including from North Korea, China, and Russia. [ABSTRACT FROM AUTHOR]