The Cabinet of Japan has approved a bill amending the Act on the Protection of Personal Information to support AI innovation and development. This marks a shift from a consent-based model towards a more flexible framework that prioritises data use for innovation. 

Previous regulation enforced that data such as race, social status and medical information could only be gathered with individuals consent. This was posing challenges for AI-driven research and business innovation that relies on large datasets for training and development. 

Developers will also be able to utilise facial scans under the new legislation, however they will have to state how images are being used, and using under-16s images will require parental consent. 

It has been suggested that the changes will maintain protections for individuals, with certain data not widely available for use, e.g. sensitive health information, however there are still concerns about reducing protections.

While this could significantly accelerate AI development for the country, critics argue that weakening data protection laws will reduce the control individuals have over how their data is collected and used, and increase the likelihood of misuse. 

The looser regulations come with deterrents for organisations to misuse data. Organisations will face repercussions such as fines if they collect the wrong information or cause harm to citizens. 

Japan’s Minister for Digital Transformation, Hisashi Matsumoto said without changes to legislation, the country would face “a very big obstacle to the development, and utilisation of AI”.

This update comes as other countries navigate making changes to legislation which balance protecting individuals data protection rights whilst encouraging innovation. 

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In the UK, data remains governed by GDPR, which enforces the lawful processing of personal data and prioritises consent. However the UK government has also indicated plans to reform data protection frameworks to bolster AI innovation. Japan’s approach may provide an informative example for shaping UK legislative changes, depending on the outcomes. 

As countries continue to compete in AI development, they must ensure they balance removing any barriers to innovation with protecting citizens data rights.