Japan relaxes privacy laws to make itself the ‘easiest country to develop AI’

The Register / 4/8/2026

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Key Points

  • Japan is relaxing privacy-related rules for organizations using personal data in ways intended to accelerate AI development and deployment.
  • The change is framed by the relevant minister as reducing friction that would otherwise slow AI adoption, with opting out of personal-data use described as a major obstacle.
  • The policy direction suggests Japan wants a more permissive data environment for training and applying AI systems while still operating within privacy governance.
  • The move signals an early trend in how governments may adjust privacy regimes to compete on AI capability and speed.

Japan relaxes privacy laws to make itself the ‘easiest country to develop AI’

Opting out of personal data use won't be an option because Minister says that's a 'very big obstacle' to AI adoption

Wed 8 Apr 2026 // 04:48 UTC

Japan’s Minister for Digital Transformation Hisashi Matsumoto has declared the nation will become the easiest place in the world to develop AI apps, thanks to legal changes that mean organizations won’t need to secure consent to use some personal information.

To make that happen, Japan’s government on Tuesday approved amendments to the nation’s Personal Information Protection Act that remove the requirement for opt-in consent before sharing personal data.

The changes only apply to data that poses little risk of infringing individuals’ rights, and when developers use it to compile statistics for research purposes. Even health-related data comes under the amendments, if it can improve public health.

Facial scans are also fair game. The amendments require those who acquire facial images to explain how they handle the data, but offering a chance to opt out won’t be mandatory.

Collecting the image of a child aged under 16 will require parental approval, a “best interests” test will apply when considering use of data that describes minors.

Organizations that collect the wrong data, or maliciously use it to harm citizens, will face fines equivalent to the profit they make from improperly using data. Japan’s government will also implement fines for obtaining data through fraudulent means.

But in the event of a data leak, organizations will not need to notify impacted citizens if there is little risk of harm to individuals.

Minister Matsumoto said Japan needs this legislative tweak because current laws represent “a very big obstacle to the development, and utilization of AI in Japan.”

“We must prevent this from happening,” he said, because without access to data Japan will struggle to develop and deploy useful AI.

Despite its reputation as a hotbed of technology, Japan has been markedly slow to digitize government services. These amendments are aimed, in part, at making sure Japan is not slow to catch the AI wave. ®

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