Japan Passes Landmark AI Law to Boost Innovation and Curb Risks

Japan Passes Bill to Boost AI Research and Development

May 29, 2025 | TOKYO – The House of Councillors approved a new bill aimed at advancing artificial intelligence (AI) research, development, and application. The bill received broad support from major parties, including the Liberal Democratic Party, Komeito, the Constitutional Democratic Party of Japan, the Japan Innovation Party, and the Democratic Party for the People.

This legislation establishes a strategic headquarters led by the prime minister and staffed by the entire Cabinet. Its mission is to create a comprehensive plan for promoting AI technologies and their use across various sectors.

Focus on Generative AI and Risk Management

For the first time, this law addresses the development of generative AI and the management of its associated risks. The core goal is to strengthen Japan’s international competitiveness by recognizing AI as a fundamental technology essential for economic growth and national security.

The law defines AI as a technology critical for both social and economic progress, while also highlighting its importance from a security standpoint.

Balancing Innovation with Safeguards

Alongside encouraging AI advancements, the legislation includes provisions to curb misinformation and prevent discrimination. It establishes clear measures to protect citizens’ rights in cases where AI technologies may cause harm.

The government gains authority to investigate AI operators and provide guidance based on findings. It can also publicly disclose information about companies that misuse generative AI for unethical purposes.

Implications for IT and Development Professionals

• The bill signals increased government oversight in AI development, which may affect compliance requirements and operational transparency.
• AI developers and businesses should prepare for potential audits and disclosures related to generative AI usage.
• Opportunities will arise for collaboration with the strategic headquarters to align innovations with national priorities.

Professionals involved in AI development and deployment in Japan will find it useful to stay informed on regulatory changes and consider how these might influence project planning and risk management.

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