Japan’s Digital Minister Hisashi Matsumoto warned on June 5 that if the country fails to keep pace with artificial intelligence development, it risks becoming an 'AI colony' in a new form of colonialism [1, 2, 3]. He said, "I hope many Japanese people understand that we need to press ahead with AI development, or we’ll end up becoming an ’AI colony’" [1]. Matsumoto stressed the bill amending Japan’s personal data protection law was crucial because Japan "cannot bear the cost of falling behind" in AI development [2].
The amendment bill, which passed the Lower House last week on May 29, allows AI developers to use sensitive personal data such as medical and criminal records without individual consent for training AI models. The bill is currently being debated in the Upper House of parliament [1, 2, 3]. Opposition parties have raised concerns it increases the risk of data breaches [1, 2, 3].
Japan is pushing to boost its domestic AI sector through subsidies, targeted government procurement, legal reforms, and support for local firms like SoftBank, Sakura Internet, and semiconductor makers [1, 2, 3]. Tokyo is also courting investment and technology access from US companies such as Microsoft and OpenAI under the US-Japan security partnership [1, 2, 3]. Matsumoto’s remarks come amid a global concern among governments about losing ground in AI and becoming dependent on foreign technologies [1].
Similar efforts are underway elsewhere, with the European Union recently unveiling plans to strengthen its own domestic cloud, AI, and chip industries to reduce reliance on US technology firms [1]. Japan’s debate on the personal data law and AI development signals its attempt to keep pace in the intensifying race for AI innovation.
The Upper House is expected to continue debating the AI personal data protection amendment bill this month, a crucial step before the new rules can take effect.
