Discussions on AI legislation in Japan are finally gaining momentum; The government aims to match legislative progress abroad

The government has finally taken a big step towards legislation to regulate generative artificial intelligence.

This move follows efforts in Europe and the United States to strengthen such regulations. However, with some parts of the government harboring deep-seated caution on this issue, specific plans have yet to take shape. One of the many pressing challenges facing such legislation is whether it can put a brake on uncontrolled AI use in high-risk areas such as elections and security.

At a news conference Wednesday, Cabinet Secretary Yoshimasa Hayashi signaled his intention to move discussions on the legislation forward while closely monitoring the situation unfolding in other countries.

“We will continue with AI regulations and promote the use of AI in an integrated manner,” Hayashi said. “We plan to discuss issues including whether it is necessary to develop domestic laws based on developments around the world.”

The government’s approach to AI regulation, including the guidelines for AI developers issued in April, has so far relied on the voluntary efforts of developers **to ensure the technology is used safely* *. Consideration of legislation marks a change in direction.

Some harmful effects of the rapidly developing generative AI have become apparent, such as the spread of misinformation, human rights violations and misuse for criminal purposes. As a result, more and more attempts have been made abroad to establish legal regulations. The European Union on Tuesday approved the Artificial Intelligence Law, which comprehensively regulates the development and effective use of AI. The United States even requires developers of powerful AI systems to share certain information with the US government.

“Internationally, there is a trend toward passing legislation, and the government has decided that Japan should also consider this,” a senior government official told The Yomiuri Shimbun.

Fears about investments could fade away

In the basic policy presented at the meeting on Wednesday, major AI developers, who have the potential to have a huge impact on people’s daily lives, were clearly in mind as targets for any legislation. The policy said the regulations should “avoid” small developers and other similar businesses. The plan was intended to prevent regulations from hampering the technological innovations of domestic AI developers, many of which are small start-ups.

The American technology giants such as Alphabet Inc., Apple Inc., Meta Platforms, Inc., Amazon.com Inc. and Microsoft Corp. would be paramount as a subject of the legislation. On the other hand, US IT titans and other major companies have announced a series of development investments in Japan. Some government officials remain reluctant to impose stricter regulations because they fear they could “weaken” these companies’ willingness to invest money in Japan.

The European Union’s AI law will be fully in force by 2026. The current position of the Japanese government is that action is also needed at home. “Japan should not distinguish itself on this issue,” said a close aide to Prime Minister Fumio Kishida. “The government will monitor the situation in Europe and the United States and take time to consider what steps need to be taken.”

High risk fields

Some members of the Liberal Democratic Party have drafted the outlines of a draft basic law to promote responsible AI. In addition to requiring AI developers above a certain size to report to the government on compliance, the bill would allow government agencies to conduct on-site inspections in the event of a serious incident. The draft also specifies that sanctions will be imposed for violations of the law. The content of the draft is similar to regulations adopted in the United States.

“We must avoid a situation where the US government is notified when a problem arises, but the Japanese government is not,” said House of Representatives member Masaaki Taira, who led discussions on the bill.

The European Union’s AI law prohibits the use of AI in high-risk areas such as assessing an individual’s creditworthiness and cognitive behavioral manipulation that could encourage criminal acts. These issues may also be considered in upcoming discussions in Japan.

Tatsuya Kurosaka, an associate professor at Keio University and an expert on AI policy, welcomed the government’s decision to discuss AI legislation, but pointed out that discussions are urgently needed for high-risk areas.

“The government must quickly implement regulations on the use of AI in security, elections and primary education,” Kurosaka said.