Policy Status
Policy status
Effective date
September 2025
Applies to
TBC
Regulatory impact
Quick Overview
Japan enacted its first dedicated AI legislation, the Act on Promotion of Research, Development and Utilization of AI-Related Technologies (AI Promotion Act), which was passed on May 28, 2025 and came into full effect on September 1, 2025. The Act establishes an AI Strategic Headquarters headed by the Prime Minister and mandates an AI Basic Plan to guide national strategy. While the Act sets foundational principles rather than detailed prescriptive rules, it represents a decisive shift from Japan's previous voluntary framework to a legislative approach. The seven core principles — human dignity, diversity and inclusion, sustainability, innovation, privacy, security, and fairness — now carry statutory backing and are supplemented by updated AI Guidelines for Business (v1.1, March 2025) that translate principles into practical compliance guidance.
What’s Changing
The AI Promotion Act (passed May 28, 2025; fully effective September 1, 2025) is Japan's first national basic law dedicated to AI, replacing the prior voluntary governance approach.
An AI Strategic Headquarters has been established, headed by the Prime Minister, which held its inaugural meeting on September 13, 2025, and is drafting the AI Basic Plan.
The AI Guidelines for Business were updated to version 1.1 in March 2025, providing structured compliance checklists, case studies, and tailored guidance for developers, providers, and users.
The Act codifies seven core principles — human dignity, diversity and inclusion, sustainability, innovation, privacy, security, and fairness — giving them statutory foundation.
METI and MIC continue to lead coordination across government, industry, and academia on sector-specific implementation guidance.
Integration with international frameworks continues through OECD, G7, and bilateral agreements with the EU on AI safety testing standards.
Who’s Affected
Technology developers creating consumer or enterprise AI tools.
Public agencies deploying automation in service delivery and procurement.
Research institutions and universities working on AI development.
Businesses of all sizes using AI-driven systems, with tailored expectations under the AI Guidelines for Business.
Multinationals operating in Japan or aligning with Japanese standards for regional compliance.
International companies supplying AI systems to Japanese markets or government agencies.
Core Principles
Human dignity: AI must respect fundamental human rights and individual autonomy.
Diversity and inclusion: AI systems must serve all people equitably.
Sustainability: AI development must support long-term social and environmental wellbeing.
Innovation: Governance must enable technological advancement and economic growth.
Privacy: AI systems must protect personal data and information rights.
Security: AI systems must be safe, reliable, and resilient.
Fairness: AI outcomes must be free from unjust bias and discrimination.
What It Means for Business
The AI Promotion Act signals a clear shift: Japan now expects organisations to align with a legislative framework rather than voluntary guidelines alone. While the Act is principles-based and does not impose direct penalties, it establishes the foundation for sector-specific regulations and procurement requirements to follow. Organisations should align with the AI Guidelines for Business v1.1, which provide structured checklists and documentation frameworks across three tiers — developers, providers, and users. Companies supplying AI to government agencies should expect updated procurement standards requiring governance evidence. The AI Basic Plan, currently being drafted by the AI Strategic Headquarters, will set specific targets and timelines for industry compliance and investment.
What to Watch Next
Publication of the AI Basic Plan by the AI Strategic Headquarters, expected to set national targets for AI investment, safety standards, and workforce development.
Sector-specific implementation regulations building on the Act's principles, particularly for healthcare, finance, and critical infrastructure.
Updated procurement guidance for public-sector AI systems requiring formal governance documentation.
Continued alignment with OECD, G7, and EU frameworks on AI safety testing and certification.
Further updates to the AI Guidelines for Business as implementation experience accumulates.
Development of the AI Safety Institute and its role in testing and assurance.
How It Compares
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| Aspect | Japan | South Korea | China |
|---|---|---|---|
| Approach Type | Principles and guidance | Rights-based | Regulatory |
| Legal Strength | Voluntary | Moderate | Binding |
| Focus Areas | Safety, fairness, explainability | Privacy and data rights | Content and security |
| Lead Bodies | METI, Cabinet Office, Digital Agency | MSIT, PIPC | CAC, MIIT |
Local Resources
Related coverage on AIinASIA explores how these policies affect businesses, platforms, and adoption across the region. View AI regulation coverage
This overview is provided for general informational purposes only and does not constitute legal advice. Regulatory frameworks may evolve, and readers should consult official government sources or legal counsel where appropriate.
