Japan warns it risks becoming an AI colony without urgent data law reform

Japan’s digital minister, Hisashi Matsumoto, has warned that the country risks becoming an AI colony if it fails to keep pace with the rapid global development of artificial intelligence, as lawmakers debate new rules aimed at supporting domestic AI growth.

Speaking in Tokyo, Hisashi Matsumoto defended the proposed amendments to Japan’s data protection law that would allow AI developers to train models using certain personal data, including medical and criminal records, without obtaining individual consent.

Matsumoto stressed that Japan must accelerate AI development to avoid dependence on foreign technology.

“I hope many Japanese people understand that we need to press ahead with AI development, or we’ll end up becoming an AI colony…the point of this change is that, with AI development moving so fast, Japan can’t afford to fall behind” – Matsumoto

The proposed legislation would expand access to data for AI training as Japan seeks to strengthen its domestic AI industry.

Meanwhile, the government has introduced subsidies, procurement programmes, and policy reforms to support domestic technology firms.

Japanese companies such as SoftBank and Sakura Internet are expanding AI infrastructure, while partnering with Microsoft and OpenAI aim to improve access to advanced technologies.

However, many Japanese fear that relaxing privacy protections could expose sensitive information and undermine public trust.

Japan’s upper house is currently reviewing the proposed legislation, whose outcome may shape the country’s AI strategy for years to come.

In a similar development, earlier this week, the European Union unveiled measures to strengthen domestic AI, cloud computing, and semiconductor industries in an effort to reduce reliance on foreign technology providers.

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