The approaching obsolescence of the E10A1 resulted in an 11-Shi (1936) requirement for a replacement, and this was met by an extensive redesign of the earlier aircraft, the Aichi AB-14, or E11A1, which entered production in 1937 as the Type 98 Reconnaissance Seaplane. Like its predecessor, the E11A1 was a three-seat biplane with a single 620 hp Hiro Type 91 twelve-cylinder liquid-cooled engine installed as a pusher, and carrying a defensive armament of a single 0.303 in (7.7 mm) machine gun on a ring-type mounting in the bow.
The E11A1 flew for the first time in June 1937, and seventeen had been built when production terminated in 1940.