Japan could end up an 'AI colony' if it falls behind, digital minister warns

TOKYO – Japan risks becoming an “AI colony” if it fails to keep up with the rapid pace of artificial intelligence development, the country's digital minister warned on Friday as lawmakers debate legislation aimed at boosting the sector.

Digital Minister Hisashi Matsumoto said Japan must accelerate AI innovation or risk becoming overly dependent on foreign technology providers.

“I hope many Japanese people understand that we need to press ahead with AI development, or we'll end up becoming an ‘AI colony,’” Matsumoto said during a press briefing.

The minister made the remarks while defending proposed amendments to Japan’s personal data protection law. The bill would allow AI developers to use data such as medical and criminal records for training AI models without obtaining individual consent.

According to Matsumoto, the changes are necessary to ensure Japan remains competitive in the global race to develop advanced AI technologies.

“The point of this change is that, with AI development moving so fast, Japan can’t afford to fall behind,” he said.

Some opposition lawmakers have raised concerns about the proposal, citing potential privacy violations and the risk of data breaches.

The bill passed Japan’s lower house of parliament last week and is currently under deliberation in the upper house.

Japan has intensified efforts to strengthen its domestic AI industry through subsidies, government procurement programs, and regulatory reforms as competition between the United States and China continues to drive rapid advances in the technology sector.

While Tokyo has sought investment and technological cooperation from American companies such as Microsoft and OpenAI, it has also supported domestic firms, including SoftBank, Sakura Internet, and Japanese chipmakers, to expand local AI capabilities and computing infrastructure.

Japan’s push reflects growing concerns among governments worldwide about technological dependence. Earlier this week, the European Union unveiled a technology sovereignty initiative designed to strengthen its cloud computing, artificial intelligence, and semiconductor industries while reducing reliance on U.S. technology companies. -Reporting by Kantaro Komiya; Editing by Kate Mayberry/Reuters