On 4 February 2025, the government of Japan published an interim report at a joint meeting of the AI System Study Group and the AI Strategy Council to discuss the regulation of artificial intelligence (AI).
Yu Matsushita
Counsel
Keiwa Sogo Law Offices
Tokyo
Tel: +81 3 3560 5051
Email: matsushita@tyhomu.com
On 28 February 2025, based on the interim report, the government submitted the first cross-cutting bill on AI to the Diet (Japanese parliament), which is named the Bill on the Promotion of Research, Development and Use of Artificial Intelligence-related Technologies.
In Japan, the rules for developers, providers and users of AI in each industry have so far been set by guidelines formulated by ministries, agencies and industry associations. In the future, AI regulation through hard law (legislation) will be implemented, together with soft laws (guidelines).
The bill is currently being debated in the Diet and has not yet been promulgated. However, as the bill is expected to be enacted with reference to the interim report, it is essential to know the content of the interim report as well as the content of the bill to understand the overview of Japanese AI regulations in the near future.
This paper therefore provides an outline of the interim report as well as the contents of the bill.
Definition of AI
As a prerequisite for understanding the content of AI regulations, this section explains the definitions of AI and generative AI under Japanese law. These definitions are not specified in the interim report and also the bill.
However, the bill defines “artificial intelligence-related technologies” as the technology necessary to realise functions that replace the intellectual capacity for cognition, reasoning and judgement of humans by artificial means, as well as technology relating to information processing systems for realising functions that process input information using said technology and output the results thereof. In addition, the main guideline that currently sets comprehensive rules for AI in Japan is the AI Guidelines for Business (version 1.0), which has been developed by the Ministry of Internal Affairs and Communications and the Ministry of Economy, Trade and Industry.
The AI Guidelines for Business state that there is currently no established definition of AI, and that it is difficult to strictly define artificial intelligence in a broad sense, but that it is an abstract concept that includes AI systems themselves, or software, or programs that perform machine learning.
An “AI system” is defined as a system that contains software as an element with the ability to operate and learn with varying degrees of autonomy throughout the process of use.
The term “generative AI” is defined as a generic term for AI based on AI models that can generate text, images and programs.
This article uses these definitions as a basis for explaining the content of the interim report and the bill.
Content of AI regulations
Strengthening government leadership and policy formulation. The interim report states that the government’s role as a facilitator should be strengthened to promote integrated policies from research and development to the economic and social use of AI, and that it is necessary to develop a policy promotion system involving a wide range of relevant ministries and agencies.
The interim report also mentions that the government should formulate strategies or basic plans for AI policy when promoting comprehensive measures.
The bill details the government’s role, according to the interim report.
Ensuring appropriateness throughout the AI life cycle. The interim report affirms the need to promote appropriate research, development and use of AI. To ensure appropriateness, it is fitting for the Japanese government to develop guidelines based on the objectives of international norms, such as the Hiroshima AI Process, and to encourage business operators to respond autonomously to the various norms. The bill clarifies that the government shall develop guidelines based on the objectives of international standards.
In addition, the interim report states that to ensure appropriateness, the government should understand the situation of business operators through surveys and, based on the results, provide necessary support including responses based on existing laws and regulations.
Since the government’s understanding of the situation of business operators and the necessary support cannot be achieved without the co-operation of these business operators, it is appropriate to take measures through the legal system so domestic and foreign business operators can be required to co-operate by providing information.
The bill states that business operators must co-operate with government policy to promote the research, development and use of artificial intelligence-related technologies.
Government investigations and disclosures. The interim report states that in the event of a serious case of infringement of the rights and interests of nationals in relation to AI used in Japan, or where it is found that there is a high likelihood of such an infringement, the government should conduct an investigation into the causes and other facts in these cases.
The government should also provide guidance and advice to those parties concerned, including service providers, as necessary, and the information obtained should be made available to the national public.
To enable the collection and disclosure of such information, the AI bill contains provisions that recognise the government’s power to investigate as well as to instruct, advise and disclose information to relevant parties using the technology.
Application of penalties. The interim report states that to ensure compatibility between promoting innovation and responding to risks, an appropriate combination of laws and regulations and soft law (such as guidelines) should be used, in principle, respect the autonomy of business operators and limit regulation by law to those issues that cannot be expected to be addressed by the voluntary efforts of those operators. Future legislation on AI may have no or limited provisions on penalties. The bill has no provisions on penalties.
Application to operators outside Japan. The interim report states that it is not appropriate to exclude foreign business operators from the scope of the AI regime across the board, as most AI produced for use in Japan is provided by foreign operators. When formulating a system that imposes some form of obligation on domestic operators, foreign operators should also be included.
Therefore, it is expected that the government’s authority to investigate foreign operators will be recognised and, in serious cases such as violations of citizens’ rights and interests, the names of those operators and other information will be made public.
However, the bill remains unclear on this issue.
Conclusion
According to the interim report and the bill, legislation to be enacted in the near future will be characterised by provisions that will at least:
Strengthen government leadership and policy formulation;
Allow the Japanese government to develop guidelines and conduct surveys of business operators; and
Allow the government to investigate business operators into the causes of serious cases of infringement of the rights and interests of the Japanese people, and to disclose information about the operators concerned.
All those involved in AI in Japan will need to keep a close eye on the developments of the proposed bill and practices as they become clearer. It should be noted that even with the enactment of AI-related regulations, individual industry laws and guidelines in each industry will continue to apply.
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