Japan to Formulate AI Policy Plan Under New AI Strategy Headquarters

Minoru Kiuchi, the recently appointed economic security minister, will head Japan's newly formed AI Strategy Headquarters. Established on September 1 within the Cabinet Office, this headquarters is intended to streamline Japan's efforts in developing and using artificial intelligence, which has previously lagged behind other nations. Prime Minister Shigeru Ishiba is at the helm of this initiative, which was established in response to the AI Law enacted earlier this year, and it will involve all Cabinet ministers.

A group comprising researchers, business leaders, and experts is set to gather soon to start working on a fundamental policy plan that aims to guide Japan's AI strategy. The upcoming guidelines will focus on preventing the dissemination of disinformation and ensuring that citizens’ rights are respected. The Japanese government wants to foster domestic research and development in AI due to concerns surrounding personal and confidential data management linked to dependence on foreign companies for AI services.

Chief Cabinet Secretary Yoshimasa Hayashi highlighted the dual nature of AI technologies, which promise to enhance productivity and address labor shortages, but also pose risks such as the spread of false information and enhanced criminal tactics. He emphasized the government's ambition to balance innovation with risk management to position Japan as a global leader in AI development and use.

Despite predictions of a significant growth in the global AI market, Japan's uptake of generative AI remains relatively slow, with only 26.7% of survey respondents indicating usage, compared to much higher rates in the United States and China. Corporate engagement with AI technologies is also noticeably limited, prompting the AI Strategy Headquarters to include discussions on risk management to alleviate public concerns related to AI technologies.

Surveys indicate that a significant portion of the Japanese population is apprehensive about potential AI misuse, with many calling for stronger legal protections against AI-related crimes. A report by KPMG found that only a small fraction of Japanese respondents felt that existing laws are adequate for the safe use of AI, suggesting that public confidence in AI regulation is low. Moreover, a 2025 survey underscored fears regarding AI's capability for criminal exploitation and the creation of malicious deepfakes.

Under the provisions of the AI Law, the Japanese government has the power to monitor AI developers if serious incidents threaten citizens' rights, although it currently imposes merely an expectation of cooperation from these companies. While the legislation allows for the potential disclosure of companies involved in harmful activities, it lacks enforceable penalties for noncompliance, distinguishing Japan’s regulatory approach from that of the European Union or South Korea, which have implemented stricter safety regulations for major AI developers.