Japan considers flexible AI regulations, diverging from EU's stringent approach

Tokyo: Japan is reportedly leaning towards adopting more relaxed regulations on artificial intelligence (AI) compared to the European Union (EU) in an effort to enhance economic growth and establish itself as a leader in advanced chip technology.

An official familiar with the deliberations revealed to Reuters that Japan aims to formulate an AI approach by the end of the year, which is expected to align more closely with the United States' stance rather than the stringent rules advocated by the EU. Should Japan adopt a softer approach, it could potentially undermine the EU's efforts to establish its regulations as a global benchmark. The EU's requirements, such as mandatory disclosure of copyrighted material used to train AI systems generating content like text and graphics, may not find resonance in Japan's approach.

During his visit to Tokyo, EU industry chief Thierry Breton seeks to promote the bloc's AI rule-making strategy and deepen collaboration in the semiconductor industry. However, the Japanese government official refrained from elaborating on specific areas where Japan's rules are likely to diverge from those of the EU.

Prof. Yutaka Matsuo, Chair of the government's AI strategy council at The University of Tokyo, commented on the EU's rules, deeming them "a little too strict." He stated that it is "almost impossible" to specify copyrighted material used for deep learning. Prof. Matsuo, who also chairs the Japan Deep Learning Association and serves as an independent director on the board of SoftBank Group led by Masayoshi Son, believes that the EU's focus is more on holding large companies accountable rather than fostering innovation.

The rapid advancements in generative AI, exemplified by companies like OpenAI backed by Microsoft, have generated both excitement and concerns due to their potential to reshape businesses and society as a whole. AI, along with advanced semiconductors and quantum computers, is considered a technology that the United States and its allied industrial democracies are in a race to develop, with China as their primary competitor.

Breton expressed his concerns about certain aspects of AI, stating, "There are things that really are a concern, and I think these things probably should be a concern for any democracy." He emphasised the importance of sharing the EU's regulatory approach with like-minded partners and friends such as Japan and the US.

For Japan, AI presents an opportunity to address the challenges posed by a declining population and the resulting labour shortage. It also has the potential to stimulate demand for advanced chips, which will be manufactured by the government-backed venture Rapidus as part of Japan's industrial policy to regain its technological leadership.

Experts note that Japan's computing power, as measured by the availability of graphics processing units (GPUs) used for AI training, significantly lags behind that of the US. Prof. Matsuo remarked that even if Japan were to increase its GPU capacity by tenfold, it would still be inferior to what OpenAI currently possesses.