Japan’s Initiative for AI Legislation
On February 4, 2025, the Japanese Government announced its ambitious plan to establish Japan as “the most AI-friendly country in the world.” This intention is characterized by a lighter regulatory approach compared to that of the EU and other nations. This announcement follows two significant developments: the submission of an AI bill to Japan’s Parliament and proposals by the Japanese Personal Data Protection Commission (PPC) to amend the Japanese Act on the Protection of Personal Information (APPI) to facilitate the use of personal data for AI development.
The AI Bill: A New Regulatory Framework
On February 28, 2025, the Japanese Government submitted its “Bill on the Promotion of Research, Development and Utilization of Artificial Intelligence-Related Technologies” (AI Bill) to Parliament. If enacted, this bill would represent Japan’s first comprehensive legislation on AI.
The AI Bill imposes a singular obligation on private sector entities utilizing AI technology: they must “cooperate” with government-led initiatives regarding AI. This obligation is expected to extend to entities involved in developing, providing, or using AI-based products or services. However, the specifics of what this cooperation entails remain unclear.
In contrast, the AI Bill mandates the government to:
- Develop AI guidelines aligned with international standards
- Collect information and conduct research on AI-related technologies
Consequently, private-sector entities may be required to comply with these government-issued guidelines and participate in government-led data collection and research initiatives.
Geographically, the AI Bill does not explicitly state its applicability to companies outside Japan. Nevertheless, the Japanese government has emphasized the importance of applying AI regulations to foreign companies, suggesting that these obligations could potentially extend beyond Japan’s borders.
Notably, the AI Bill does not prescribe penalties for non-compliance. However, it does require the Japanese Government to assess instances where improper or inappropriate use of AI technologies has harmed individual rights or interests and to take necessary actions based on the findings. In severe cases of rights violations, the Government may issue guidance for compliance or publicly disclose the names of offending entities.
Proposed Amendments to the Data Protection Law
On February 5, 2025, the PPC proposed introducing exemptions to the APPI’s requirement for obtaining a data subject’s consent in specific scenarios:
- When collecting sensitive personal data (e.g., medical history or criminal records)
- When transferring personal data to third parties
The PPC argues that if personal data is utilized for generating statistical information or developing AI models, where results cannot be traced back to individuals, the risk of infringing on individual rights is minimal.
The PPC suggests that AI developers should be able to collect publicly available sensitive personal data without obtaining consent from data subjects, provided that the data will solely be used for AI model development. Furthermore, data controllers should be able to share such data with AI developers without requiring consent from the data subject.
While a specific draft amendment to the APPI has yet to be released, the PPC’s proposals signify a notable move towards promoting AI development through the relaxation of data protection restrictions.
Conclusion
Japan’s efforts to adopt AI-friendly legislation reflect a strategic move to enhance its position in the global AI landscape. By aiming to create a less restrictive regulatory environment, Japan is poised to attract innovation and investment in AI technologies, while also navigating the complexities of personal data protection.
The ongoing developments in AI regulation will be closely monitored as Japan seeks to balance technological advancement with the safeguarding of individual rights and interests.
