Japan's Innovative AI Legislation Strategy

Published Date : 05/06/2025 

Japan has introduced a new law to promote artificial intelligence (AI) research and development, positioning itself as a global leader in the AI landscape. The Act on the Promotion of Research, Development and Utilisation of Artificial Intelligence-Related Technologies aims to foster innovation and collaboration. 

Japan has introduced a new law aimed at encouraging artificial intelligence (AI) research and development. This legislation, known as the Act on the Promotion of Research, Development and Utilisation of Artificial Intelligence-Related Technologies, seeks to position Japan as a leader in the global AI landscape. The law diverges from stringent regulatory frameworks like the European Union’s AI Act, instead promoting an innovation-driven environment.

The Act establishes an Artificial Intelligence Strategy Headquarters under the Cabinet. This body is responsible for formulating a national Basic Plan for AI. The plan encompasses foundational research, industrial deployment, international collaboration, and public education. The law avoids rigid regulatory frameworks and focuses on enabling innovation and encouraging cooperation among stakeholders.

In contrast to Japan’s approach, the EU’s AI Act employs a risk-based classification system. It categorises AI systems into tiers, imposing strict obligations on developers, especially in high-risk areas. The EU framework is comprehensive, prioritising human dignity and digital sovereignty. Non-compliance results in penalties and scrutiny.

Japan’s legislation is based on two core assumptions. First, innovation ecosystems flourish in a low-regulation environment. Second, voluntary cooperation, guided by national coordination, can mitigate AI-related risks. The law assigns roles to local governments, universities, research institutions, businesses, and the public, promoting a collaborative framework.

While Japan’s model encourages innovation, it raises concerns about accountability. The absence of clear standards may lead to unreported AI-related harms. Questions arise regarding bias, disinformation, and algorithmic failures. The challenge lies in ensuring that voluntary principles translate into effective safeguards in sensitive sectors like healthcare and defence.

Japan’s AI law reflects its strategic response to economic challenges, including a shrinking workforce and global competition. The law mandates international cooperation and norm-setting, aligning Japan with emerging global standards. This proactive stance is crucial as countries worldwide explore varying approaches to AI regulation.

Countries like the United States and the United Arab Emirates (UAE) are adopting different strategies. The U.S. is moving towards legislative clarity with the AI Disclosure Act, while the UAE is implementing a state-led AI strategy that combines strategic investment with targeted regulation. Each approach reflects national priorities and cultural contexts.

Japan’s law is a gamble on institutional trust. It relies on collaboration among government, research institutions, and businesses to ensure ethical AI innovation. The success of this model depends on effective coordination and the ability to adapt policies based on real-world feedback. The law includes provisions for future reviews, acknowledging the need for continuous refinement. 

Frequently Asked Questions (FAQS): 

Q: What is the main goal of Japan’s AI law?

A: The main goal of Japan’s AI law is to promote research, development, and utilisation of AI-related technologies, positioning Japan as a global leader in AI innovation.

Q: How does Japan’s AI law differ from the EU’s AI Act?

A: Japan’s AI law focuses on an innovation-driven environment with a low-regulation approach, while the EU’s AI Act employs a risk-based classification system with strict obligations for developers.

Q: What are the core assumptions of Japan’s AI legislation?

A: The core assumptions are that innovation ecosystems flourish in a low-regulation environment and that voluntary cooperation guided by national coordination can mitigate AI-related risks.

Q: What are the potential risks of Japan’s AI model?

A: The potential risks include accountability issues, unreported AI-related harms, and concerns about bias, disinformation, and algorithmic failures.

Q: How does Japan’s AI law address international cooperation?

A: Japan’s AI law mandates international cooperation and norm-setting, aligning the country with emerging global standards in AI regulation. 

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