Japan Govt Seeks to Boost AI Development With Looser Data Protection Regulations, but Seeks Tougher Penalties on Violations

The Yomiuri Shimbun

7:00 JST, January 9, 2026

In an effort to support the development of AI, the government plans to submit a bill including more relaxed regulations in a revision of the Law on the Protection of Personal Information, it has been learned. Under the revised law, businesses could acquire sensitive personal information without obtaining consent in limited cases.

Under the current law, an individual’s consent is required when businesses obtain their sensitive personal information — such as medical records and criminal records — or provide it to third parties. Under the bill that the government plans to submit during the regular Diet session scheduled to convene on Jan. 23, however, businesses could be exempted from obtaining consent when collecting such sensitive personal information, as long as it is used for statistical and other limited purposes, according to several government sources.

Businesses require vast amounts of data to train and improve AI programs. Due to the requirement of obtaining each individual’s permission for use of their sensitive personal information, the business community has been calling for deregulation to accelerate AI development.

While relaxing some regulations, the government also aims to include strengthened penalties in the bill to prevent the improper use of personal information, according to the sources.

A new penalty system is being considered, with an eye on businesses that profit from the misuse of large amounts of personal information. Under the envisioned system, such businesses could face penalties equivalent to the profits they gained through carrying out prohibited practices, the sources said.

The bill would also review requirements for issuing recommendations or orders to businesses so that the government can promptly urge that violations be rectified.

For businesses to acquire or use the personal information of individuals aged 15 and younger, the bill would make it mandatory for them to obtain consent from the child’s parent or guardian, according to the sources.