TOKYO - Isuzu Motors has begun full-scale development of a second-generation "AI truck" capable of making driving decisions on its own, as Japan's largest commercial vehicle maker by domestic market share aims to introduce Level 4 autonomous driving in fiscal 2027 to help address a worsening shortage of truck drivers. Japan is projected to face a serious logistics crisis by 2030, when driver shortages could leave the country unable to transport as much as 25% of its current freight volume. The consequences could affect everyday life, with supermarkets and convenience stores unable to keep shelves fully stocked and online purchases failing to arrive on schedule. Isuzu sees autonomous driving as one way to maintain Japan's freight network as the labor shortage deepens. The company is targeting the social implementation of Level 4 autonomous driving, in which vehicles can operate without a driver under specified conditions, during fiscal 2027. Autonomous vehicles have become a major global growth market, drawing intense competition from technology companies including Google, Amazon and Nvidia. Japan is also seeking to strengthen its position through cooperation between the government and private sector. At the CES technology exhibition in Las Vegas in January, autonomous driving was among the technologies attracting attention. Nvidia introduced Alpamayo, an artificial intelligence system for autonomous driving that can assess surrounding conditions and make decisions independently. The company said the technology could significantly improve the safety of driverless vehicles. Some estimates put the global autonomous driving market at about 18 trillion yen within the next three years. Isuzu representatives were among the Japanese visitors studying the latest technology at CES as the truckmaker seeks to narrow the gap with overseas competitors. One Isuzu employee involved in the effort said the company is still learning about advanced AI technology and gathering information from specialists around the