AI Regulations in Japan: A Comprehensive Overview
Japan has recently taken significant steps towards establishing a regulatory framework for artificial intelligence (AI) through the enactment of the Act on Promotion of Research and Development and Utilization of Artificial Intelligence-Related Technologies, commonly referred to as the AI Bill. This legislation marks Japan’s first formal approach to regulating AI, emphasizing a balanced strategy between promoting innovation and managing associated risks.
Regulatory Approach
The Japanese government has historically favored a soft law approach to AI governance, as seen with the AI Guidelines for Business released in April 2024. However, the need for a more robust regulatory framework became apparent, leading to the AI Bill’s introduction. The legislation aims to create a structured environment that fosters AI development while ensuring the protection of public interests.
Key Provisions of the AI Bill
Passed by Parliament on May 28, 2025, the AI Bill outlines several core principles and responsibilities for AI Business Actors, which include developers, providers, and users of AI technologies. Notable provisions include:
- Article 7: Mandates AI Business Actors to improve business efficiency in alignment with the Bill’s core principles.
- Articles 4 and 5: Empower governmental bodies to formulate policies impacting AI Business Actors.
- Article 16: Requires cooperation from AI Business Actors during governmental investigations.
- Article 25(2): Grants the AI Strategy Center authority to request cooperation from any relevant entity.
While the AI Bill does not impose explicit penalties for non-compliance, it allows the government to take necessary measures based on its findings, including the potential public naming of non-cooperative companies.
Core Principles and Compliance Requirements
The AI Bill emphasizes several guiding principles aimed at ensuring the responsible use of AI:
- Human-centric: AI usage must respect fundamental human rights.
- Safety: AI should not harm individuals or properties.
- Fairness: Efforts must be made to eliminate bias and discrimination.
- Privacy protection: Safeguarding user privacy is paramount.
- Transparency: Stakeholders must be informed about AI systems and their functionalities.
- Accountability: AI Business Actors must ensure traceability of their systems.
- Education/literacy: Stakeholders should be educated about AI’s complexities and potential misuse.
- Innovation: Promotion of innovation should be a priority.
Territorial and Sectoral Scope
The AI Bill does not delineate a specific territorial scope, indicating that its provisions apply to both domestic and foreign entities involved in AI research and development. Additionally, the Bill is applicable across various sectors, ensuring a comprehensive regulatory environment.
Other Relevant Legislation
In addition to the AI Bill, several existing laws may impact AI development and usage in Japan, including:
- The Digital Platform Transparency Act: Imposes transparency requirements on online platforms.
- The Financial Instruments and Exchange Act: Regulates algorithmic high-speed trading.
- The Civil Code: Addresses tort claims related to AI-generated defamatory content.
- The Copyright Act: Can be enforced against inappropriate AI usage.
Furthermore, legislation such as the Information Distribution Providers Act aims to expedite content takedown requests, indirectly addressing risks associated with AI-generated content.
Conclusion
The AI Bill represents a significant shift in Japan’s approach to AI governance, balancing innovation with the need for regulatory oversight. As the AI Strategy Center prepares for its launch, the implementation of the Fundamental AI Plan is expected to shape the future of AI in Japan, ensuring that the technology develops in a manner that benefits society while mitigating potential risks.
