Introduction
Japan has recently taken a significant step in the regulation of artificial intelligence by enacting the “Act on Promotion of Research and Development and Utilization of Artificial Intelligence-Related Technologies,” also known as the “AI Promotion Act.” This legislation aims to foster innovation while balancing ethical considerations and recognizing associated risks, marking the country’s first explicit regulation of AI. It establishes a comprehensive framework for AI governance, emphasizing adaptive policy development [1], public transparency [1], and collaboration with stakeholders [1].
Description
Japan has recently enacted the “Act on Promotion of Research and Development and Utilization of Artificial Intelligence-Related Technologies,” commonly referred to as the “AI Promotion Act.” This landmark legislation establishes a Cabinet-level AI Strategy Headquarters, which is tasked with creating a Basic Plan for AI that encompasses research [3], development [1] [3] [4] [5] [6], deployment [1] [3] [4] [6], international collaboration [3] [6], and public education [3]. This marks the country’s first explicit regulation of artificial intelligence, aiming to foster innovation while balancing ethical considerations and recognizing associated risks. The Act emphasizes the importance of AI technologies for Japan’s economic and societal development [4].
The legislation introduces a governance framework that prioritizes adaptive policy development [1], public transparency [1], and collaboration with stakeholders [1], positioning them as partners in creating responsible AI systems [1]. It establishes an AI Strategy Center [5], expected to launch in summer 2025 [5], and outlines a Fundamental AI Plan to be implemented within the year [5]. The law adopts a “basic” regulatory structure that relies on existing laws and business cooperation rather than creating new regulations [4], promoting a voluntary and facilitative model that avoids strict enforcement-heavy approaches [3].
The AI Bill mandates that principles for research and development be established by the government within three months of enactment [4]. While the guidelines issued by various ministries are non-binding [5], they are closely adhered to by companies and the public [5]. The legislation encourages transparency from AI operators regarding the development and use of AI [4], highlighting potential risks such as criminal use [4], personal information leakage [4], and copyright infringement [4]. It identifies higher-risk AI systems based on their deployment across ministries or in public-facing services [1], particularly in areas like social services [1], healthcare [1] [3] [6], and law enforcement [1]. AI tools that process personal or sensitive data are subject to heightened scrutiny [1], and systems lacking meaningful human oversight in decision-making contexts are classified as high-risk [1].
Developers of specific AI infrastructure models are required to notify authorities and implement safety systems [6], with periodic compliance reporting and government audits [6]. Organizations must designate an internal lead for AI governance [1], often a Chief AI Officer [1], and submit usage reports and risk assessments to the Advanced AI Utilization Advisory Board [1]. Technical safeguards must be implemented to address known risks [1], including bias and privacy violations [1], with an emphasis on maintaining traceability and documentation of model training and updates [1]. Channels for human oversight and error correction must be established [1], and significant incidents must be reported and disclosed publicly [1].
Entities are required to make reasonable efforts to align their AI usage with the law’s core principles [5], cooperate with investigations [5], and adhere to guidance provided as a result of those investigations [5]. Although there are no specific penalties for non-compliance [5], the government is granted broad authority to investigate AI-related incidents that violate citizens’ rights, publicly disclose businesses involved in serious violations [6], and take necessary actions based on its findings [5]. This “name and shame” approach promotes compliance by leveraging reputational risks as a deterrent against AI misuse.
A dedicated team of Cabinet ministers will formulate a basic policy on AI to enhance Japan’s competitiveness [6], aligning with international cooperation on AI governance [6], as evidenced by Japan’s signing of the Council of Europe Framework Convention on Artificial Intelligence and Human Rights [6], Democracy [6], and the Rule of Law [6]. To support AI development [6], Japan is considering amendments to privacy laws to facilitate the use of personal data [6], particularly in healthcare [1] [3] [6], by easing consent requirements for anonymized data [6]. Legal experts are advising on the creation of standardized data-sharing frameworks that balance innovation with privacy protection [6].
Japan’s approach to AI governance reflects a reliance on technocratic leadership and institutional trust, positing that public and private entities will self-regulate effectively when provided with appropriate direction [2], infrastructure [2] [4] [6], and ethical guidance [2]. This model signifies a transition from voluntary guidelines to enforceable regulations [6], emphasizing accountability in AI development and ensuring that businesses comply with safety standards and ethical considerations in AI deployment. However, the flexibility of the law may also raise concerns regarding timely responses to potential harms or malpractice, particularly in high-stakes sectors such as healthcare and defense [3]. The effectiveness of this framework will depend on the agility of policy implementation [3], cross-sector coordination [3], and the ability to adapt to evolving global norms [3], serving as a potential alternative to both deregulation and hyper-regulation [3].
Conclusion
The enactment of the AI Promotion Act represents a pivotal moment in Japan’s approach to artificial intelligence governance. By establishing a comprehensive framework that emphasizes collaboration, transparency [1] [4], and adaptive policy development [1], Japan aims to foster innovation while addressing ethical and safety concerns. The legislation’s reliance on existing laws and voluntary compliance, coupled with the potential for reputational consequences, underscores a balanced approach to regulation. However, the success of this framework will hinge on its ability to adapt to rapid technological advancements and global standards, ensuring that AI development aligns with societal values and safety requirements.
References
[1] https://www.art25consulting.com/blog/japan-passes-landmark-ai-law-a-new-governance-model-for-the-age-of-artificial-intelligence
[2] https://www.thestudyias.com/blogs/japans-ai-law/
[3] https://www.legacyias.com/how-japans-new-ai-act-fosters-an-innovation-first-ecosystem/
[4] https://itbusinesstoday.com/gov-tech/japan-passes-its-innovation-focused-ai-governance-bill/
[5] https://www.jdsupra.com/legalnews/ai-watch-global-regulatory-tracker-japan-1575214/
[6] https://justai.in/can-you-innovate-without-breaking-rules-japan-think-so-and-theyve-got-a-law-to-prove-it-05-06-2025/
