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Japan approves law allowing use of sensitive personal data for AI development

Japan’s parliament has approved amendments to the country’s personal data protection law, paving the way for companies to use certain sensitive personal information for artificial intelligence and statistical research without obtaining individual consent.

The revised legislation, passed by the House of Councillors on Friday, is part of the government’s broader strategy to strengthen domestic AI development while balancing privacy protections.

Under the new law, companies will be permitted to use anonymised sensitive data collected through social media platforms and other sources for AI training and statistical analysis, provided the information cannot be used to identify specific individuals. The data may include details such as race, religious beliefs, medical records and criminal histories.

The amendments also introduce tougher penalties for misuse of personal data. Companies found to have improperly obtained or used the personal information of more than 1,000 people will face fines equivalent to the profits earned from the misuse.

The Japanese government has identified artificial intelligence as a strategic priority to enhance economic competitiveness, national security and technological self-reliance. Business groups have increasingly called for more flexible data regulations, arguing that access to large datasets is essential for developing advanced AI systems.

However, the changes have also raised privacy concerns. During parliamentary debates, some lawmakers warned that individuals could be unaware that their sensitive personal information is being used for AI development or research.

In addition to the amendments to the privacy law, the Diet approved separate legislation allowing government agencies to share public-sector data with private companies and research institutions developing advanced technologies, including artificial intelligence and autonomous vehicles.

Officials say the reforms are intended to improve Japan’s use of government-held data, an area where the country has lagged behind many of its international peers. The government believes greater access to public data will encourage innovation while maintaining safeguards for personal privacy.

One anticipated application is the development of self-driving technology through the integration of private-sector GPS data with government-provided geographical information.

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