TMT 2025

JAPAN Trends and Developments Contributed by: Keiji Tonomura, Minh Thi Cao Koike, Akira Komatsu and Yuki Matsumiya, Nagashima Ohno & Tsunematsu

biological, radiological and nuclear (CBRN) or cybersecurity concerns. Future steps To achieve a balance between promoting innova - tion and managing risks, the government will first develop guidelines for AI in general, and encour - age businesses to proactively ensure transpar - ency and proper practices. At the same time, the government will study and understand risks related to life and physical safety and national security, and in the event of a serious problem, the government is required to take measures and provide support by utilising existing laws and regulations. Furthermore, in addition to volun - tary efforts by businesses, legislative measures are needed to ensure effectiveness. However, it is necessary to proceed with the development of legislation while taking care not to stifle innova - tion. Ultimately, the interim report proposes the development of an AI-related regulation that will most facilitate AI research and development and implementation, and serve as a model for other countries. The above is only an interim draft report, and while it remains uncertain whether legislation will be enacted, it is important as it outlines the cur - rent direction of AI regulation in Japan. Amendment to Data Protection Law Overview The Japanese Act on the Protection of Personal Information (APPI) is expected to be reviewed and amended, if necessary, every three years after its enactment (this review is called “The Every-Three-Year Review”). For this purpose, the Personal Information Protection Commis - sion (PPC) has been conducting studies since November 2023, and in June 2024, the PPC published the “Interim Report on the Every- Three-Year Review of the Act on the Protec -

tion of Personal Information” (“Interim Report”). Furthermore, based on the Interim Report, the PPC established a study group to consider the issues that required special consideration, and in December 2024, the study group published the “Report of the Study Group on the Every- Three-Year Review of the Act on the Protection of Personal Information” (“Study Group Report”). It is unclear whether an amendment to the APPI will be made in 2025 and what the content of the amendment will be, but the Interim Report and the Study Group Report indicate the issues that the government believes should be addressed in the next amendment. The Interim Report In the Interim Report, the following issues were raised and discussed. (1) Establishing new arrangements for biometric data Given the importance and sensitivity of biomet - ric data, it may be necessary to introduce stricter regulations for biometric data. Possible provi - sions include a more specific purpose of use and a more flexible possibility for the data subject to request the suspension of the use. (2) Clarification of “prohibition of inappropriate use” and “proper collection” Article 19 of the APPI provides for the “prohibi - tion of inappropriate use” of personal informa - tion and Article 20 provides for the “proper col - lection” of the same. Since these terms seem to be ambiguous, it may be necessary to concre - tise these terms and categorise these concepts in order to establish clearer rules.

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