INTRODUCTION TO JAPAN AND ITS AI POLICIES

Nhật Bản là một quốc đảo tại khu vực Châu Á Đông, nằm giữa lòng Thái Bình Dương. Hệ thống chính trị của đất nước này là chính thể lập hiến với chế độ quân chủ hoàng gia; vị trí cao nhất của nhà nước thuộc về hoàng đế, và thủ tướng là người đứng đầu của chính phủ.

 

1. Introduction to Japan and the development of Japan's AI policies and regulations on the world map.

 

• Introduction to Japan

Japan is an island nation in East Asia, located in the Pacific Ocean. The government system is a parliamentary government with a constitutional monarchy; the chief of state is the emperor, and the head of government is the prime minister. 

The Economy of Japan is a highly developed/advanced social market economy, often referred to as an East Asian model. Japan is a member of APEC, WTO, CPTPP, RCEP, OECD, G-20, G7, and others

 

Territory: 379,987 km2

Population: more than 125 million people (2022 - Work bank)

GDP: 4.26 Trillion US$ (2022 - World Bank) - 4th-largest economy in the world

 

• The development of Japan's AI policies and regulations

In 2022, Japan released a National AI Strategy. Japan promotes the notion of "agile governance," whereby the government provides nonbinding guidance and defers to the private sector's voluntary efforts to self-regulate. The following white papers have been issued for policy guidance: 

• AI Governance in Japan Ver. 1.1. 

• Governance Guidelines for Implementation of AI Principles. 

• AI Utilization Guidelines, an initiative for implementing the OECD AI Principles. 

 

In 2023, the AI Strategy Council released draft AI Operator Guidelines, which clarify how operators should develop, provide, and use AI.

 

2. Recent AI policy actions and government highlights in Japan: (1) AI Social Principles with a focus on human-centeredness and (2) Governance Guidelines for Implementation of AI Principles

 

• Social Principles of Human-centric AI (2019)

 

The Social Principles of Human-Centric AI, formulated by the Council for Social Principles of Human-Centric AI, outline AI's position within Japan's "Society 5.0" and advocate for AI to prioritize human-centricity. 

1. Seven core principles emphasize: It's a balanced blend of protective measures and proactive AI usage guidelines.

 - human-centricity

- education/literacy

- privacy protection

- security assurance

- fair competition, 

- fairness/accountability/transparency

- fostering innovation. 

2. Two-Fold regulatory approach.

Japan's AI policies bifurcate into 'Regulation on AI' (managing risks) and 'Regulation for AI' (promoting implementation). This dual approach accommodates risk management and innovation encouragement.

 

3. Agile governance

Interestingly, Japan avoids rigid, prescriptive AI laws, favoring "agile governance". It's a strategy of updating nonbinding guidelines based on multi stakeholdermultistakeholder dialogues, reflecting the dynamic nature of AI.

 

4. Sector-Specific regulations and liability

While Japan doesn’t broadly restrict AI, sector-specific laws require businesses to manage risks responsibly. Also, AI-related damages might invoke tort liability, highlighting the importance of diligent AI operation.

 

 

• Governance Guidelines for Implementation of AI Principles (2022): The Guidelines themselves are not legally binding

Aims:  

• action targets to be implemented by an AI company, 
• supporting the implementation of the AI principles that are required for the facilitation of deployment of AI.
• hypothetical examples of implementation corresponding to each of the action targets
• practical examples for gap analysis between AI governance goals and the current state

1. Conditions and Risks Analysis 

• Understanding the positive and negative impacts that AI systems may have
•  Understanding social acceptance of AI system development and operation
• Understanding your company's AI proficiency

2. Goal setting

• Considering setting AI governance goals

3. System design (building an AI management system)

• Incorporating gap analysis between AI governance goals and current state to address the gap into the management system as essential process 
• Improving literacy of human resources responsible for AI management systems
• Reinforcing AI management through cooperation between companies/departments such as by proper information sharing 
• Reducing incident-related burdens on users by preventing incidents and through early response

4. Implementation 

• Ensuring readiness for an explanation about the implementation status of AI management systems 
• Ensuring readiness for explanation about the operating status of individual AI systems
•  Considering the ranking implementation of AI governance as non-financial information proactively disclosing the information

5. Evaluation

• Verifying an AI management system works appropriately
• Considering seeking feedback from outside stakeholders

6. Re-analysis of conditions and risks

•  Re-implementing Action Targets 1-1 to 1-3 in a timely manner

 

3. Impact of these guidance documents and principles on Vietnamese businesses when providing products and services to the Japanese market.

Developers and deployers need to adhere to applicable national laws and regulations, including sector specific laws and constitutions when designing, developing, and deploying AI technologies. Therefore, if Vietnamese businesses wish to develop or deploy their products or services in Japan, they also need to consider the guidelines and laws in Japan

 

International collaboration: Japan's leadership in AI governance is pivotal for international discourse. Their commitment to sharing best practices and developing common standards exemplifies a global collaborative spirit.

 

Guidance for private entities: Japan offers extensive guidelines for private companies, encouraging responsible AI governance. This includes METI’s Governance Guidelines and data utilization guidebooks, underlining the value of self-regulation in AI.

 

4. Why do businesses need to establish an AI Governance Framework and adhere to the Social Principles of Human-centric AI? How can Humane AI Asia assist businesses? 

 

We choose to focus on six main areas that are prominent in the public discussion or among the intents of regulators. In order, we cover: the effects of AI on competition; privacy; copyright issues; military uses and national security; ethical and bias considerations; and financial stability. 

Insufficient AI governance framework puts organizations at risk of legal, financial, and reputational harm due to biased AI outcomes. Effective AI governance is essential not just for regulatory compliance but also for fostering trust in AI.

 

Companies utilizing AI need to establish responsible governance practices to mitigate risks and comply with currentevolving regulations. Proactive governance provides a competitive advantage, especially with new laws such as the EU AI Act. Demonstrating accountability and transparency is increasingly crucial.

 

 

 

Below are some specific services that Humane AI Asia can provide to customers:

 

• Helping customers evaluate the potential impact of AI on their businesses and customers
• Develop a Responsible AI strategy that aligns with your client's business goals
• Advise on AI-related regulatory requirements in Japan
• Develop safe, secure, transparent, and responsible AI systems
• Deploy AI solutions that help customers comply with regulatory requirements
• Provides tools and resources to help customers manage AI risks
• Provide AI Ethics, Responsible AI training to customers' employees
• Raise awareness of ethical issues related to AI
• Promote a Responsible AI culture in businesses

 

For more information about Humane AI Asia, please visit: 

 

Fanpage: Humane-AI Asia

LinkedIn: https://www.linkedin.com/company/humane-ai-asia/  

Website: https://www.humane-ai.asia/ 

Email: info@humane-ai.asia  

 

 

References

https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=JP

https://data.worldbank.org/indicator/SP.POP.TOTL?locations=JP

https://globaledge.msu.edu/countries/japan

https://www.linkedin.com/posts/sabina-sujecka-ux-datascience_social-principles-of-human-centric-ai-activity-7159085588241887233-kZyN/