AI Watch: Global Regulatory Tracker - Japan

Summary

Japan has officially joined the global AI regulation race with the passage of its first comprehensive AI law on May 28, 2025. This White & Case regulatory tracker provides an in-depth legal analysis of Japan's groundbreaking "Act on Securing Safe and Reliable Use of Artificial Intelligence-Related Technologies" - a milestone that positions Japan alongside the EU and other major jurisdictions in establishing formal AI governance frameworks. The report offers critical insights into Japan's unique approach to AI regulation, compliance requirements, and what this means for organizations operating AI systems in the Japanese market.

The Backstory: Japan's Path to AI Regulation

Japan's approach to AI governance has been notably pragmatic compared to other major jurisdictions. While the EU pursued comprehensive regulation through the AI Act and the US focused on executive orders and agency guidance, Japan took a more measured approach, observing global developments while crafting legislation tailored to its technological landscape and business culture. The May 2025 passage of this Act represents a significant shift from Japan's traditionally principle-based, voluntary approach to a more structured regulatory framework - signaling the country's commitment to maintaining its position as a global AI leader while addressing safety and ethical concerns.

What Makes Japan's AI Law Different

Unlike the EU's risk-based categorization system, Japan's AI Act focuses on "securing safe and reliable use" - language that reflects Japan's emphasis on practical implementation over theoretical risk assessment. The law incorporates Japan's distinctive approach to technology governance, which typically emphasizes industry collaboration and gradual implementation rather than immediate compliance mandates. This regulatory philosophy creates a framework that's less prescriptive than European standards but more structured than the US's current patchwork approach, potentially making it an attractive model for other Asian jurisdictions considering AI legislation.

Key Compliance Implications

The Act introduces several compliance obligations that organizations must navigate:

• Registration and Reporting Requirements: Companies deploying certain AI systems in Japan will need to register with designated authorities and provide regular reports on AI system performance and safety measures.
• Technical Standards: The law establishes technical requirements for AI systems, likely building on Japan's existing industrial standards and incorporating elements from international frameworks like ISO/IEC standards.
• Risk Assessment Protocols: Organizations must implement risk assessment procedures, though these appear to be more flexible and industry-specific than the EU's rigid risk categories.
• Incident Reporting: The Act includes provisions for reporting AI-related incidents, creating a national database to track AI safety issues and improve regulatory understanding.

Who This Resource Is For

This regulatory tracker is essential for:

• Legal counsel and compliance officers at multinational technology companies with operations or ambitions in Japan
• AI product managers and technical teams developing or deploying AI systems in the Japanese market
• Policy professionals and government affairs specialists tracking global AI regulation trends and comparative regulatory approaches
• Business leaders making strategic decisions about AI investments and market entry in Japan
• Regulatory consultants advising clients on international AI compliance strategies
• Academic researchers and policy analysts studying comparative AI governance frameworks

The Bottom Line for Global Organizations

Japan's entry into comprehensive AI regulation creates both opportunities and challenges for global organizations. Companies already complying with the EU AI Act may find some synergies, but Japan's unique approach means additional compliance work rather than simple regulatory arbitrage. Organizations should begin assessing their AI systems against Japan's requirements now, particularly if they're planning market entry or expansion. The Act also signals that major Asian economies are moving toward formal AI regulation, suggesting that companies should prepare for a more complex global compliance landscape in the coming years.

This tracker provides the detailed legal analysis necessary to understand not just what Japan's law requires, but how it fits into the broader global AI regulatory ecosystem - making it an invaluable resource for strategic planning and compliance preparation.