News

Japan’s First AI Legislation

Japan’s first AI-specific legislation came into force on September 1, 2025, establishing a basic framework that signals the government’s intent to develop more comprehensive AI regulation in the near future.

The Act on the Promotion of Research, Development, and Utilization of Artificial Intelligence-Related Technologies (the “AI Act”), which is the first law related to Artificial Intelligence (“AI”) in Japan, was enacted on May 28, 2025, and came into force on September 1, 2025. This article provides an overview of the new legislation.

 

1. Background of the Enactment

During the past years, Japan has been taking a soft law approach to regulating AI, such as through the “AI Guidelines for Business” developed by the Ministry of Economy, Trade and Industry (METI) and the Ministry of Internal Affairs and Communications (MIC). However, with the rapid advancement of generative AI research, development, and use, the AI Study Group established under the Cabinet Office issued an “Interim Report” recommending that the government establish a legal framework for AI.

 

2. Nature and Overview of the Law

The AI Act primarily establishes the implementation of basic measures by the government and the establishment of the AI Strategic Headquarters, with most of its provisions constituting a basic framework law directed at the national government.

The provisions concerning business operators are limited to Article 7 (Responsibilities of Business Operators Using AI), and these do not establish specific rights or obligations.

Therefore, the law appears to primarily serve as a framework for future legislation and policy development.

 

3. Definition of AI

The AI Act defines AI as “technology necessary to realize functions that artificially substitute for human intellectual capabilities related to cognition, reasoning, and judgment, as well as technology related to information processing systems that process input information using such technology and output the results” (Article 2).

The phrase “technology necessary to realize functions that artificially substitute for human intellectual capabilities related to cognition, reasoning, and judgment” includes technologies such as machine learning, deep learning, and natural language processing. The use of the phrase “intellectual capabilities related to human cognition, reasoning, and judgment” reflects the law’s focus on general-purpose AI rather than AI specialized for specific tasks. The term “reasoning” is used because AI is expected not only to predict future states (unlike autonomous vehicles), but also to perform various types of reasoning.

 

4. Basic Principles

The AI Act establishes four basic principles.

I)     The promotion of AI research, development, and utilization is important for the economy, society, and national security, and it is necessary to maintain research and development capabilities and enhance international competitiveness;

II)    Comprehensive and systematic promotion from basic research to utilization;

III)    The need to ensure transparency for appropriate research, development, and utilization; and

IV)    Playing a leading role in international cooperation.

Regarding the third principle, the law states: “Given that AI research, development, and utilization conducted for improper purposes or through inappropriate methods may facilitate situations that harm the peace of citizens’ lives and their rights and interests, such as use in criminal activities, leakage of personal information, and copyright infringement, necessary measures including ensuring transparency in the process of AI-related technology research, development, and utilization must be taken to ensure proper implementation.” (Paragraph 4, Article 3).

This does not necessarily presume that situations “harming rights and interests” are currently occurring. However, it acknowledges the risk that AI research, development, and utilization may facilitate the leakage of personal information, indicating the possibility of future legislation or other measures being taken.

5.    Responsibilities of Business Operators

Article 7 of the AI Act establishes the responsibilities of business operators using AI. Business operators are defined as “persons who intend to develop or provide products or services utilizing AI-related technology, and other persons who intend to utilize AI-related technology in their business activities.” Business operators include not only domestic but also foreign entities.

Business operators using AI are required to: i) make efforts to improve efficiency and sophistication of business activities and create new industries; and ii) cooperate with measures implemented by the national and local governments.

As for the latter, recognizing the importance of the role of business operators, this provision requires cooperation with future Japanese legislation and policies. While it does not establish specific rights or obligations, it can be interpreted as imposing heavy responsibilities on business operators.

 

6. Future Outlook

Article 10 of the AI Act provides that “the national government shall take necessary legislative, financial, and other measures to implement policies for promoting the research, development, and utilization of AI-related technology.”

Furthermore, a supplementary resolution was adopted by the Diet when the bill was passed, which includes provisions regarding the protection of personal information and citizens’ rights when utilizing AI, and the introduction of risk-based regulatory measures when new risks emerge that cannot be adequately addressed by existing laws and guidelines.

While the AI Act establishes a basic framework, these provisions point to the likelihood of more comprehensive AI legislation in the near future.

 

Article provided by INPLP member: Satoshi Shono (Matsuda & Partners, Japan)

 

 

Discover more about the INPLP and the INPLP-Members

Dr. Tobias Höllwarth (Managing Director INPLP)