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

Japan could end up an 'AI colony' if it falls behind, digital minister warns
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Summary Japan warned it could become an “AI colony” if it lags in artificial intelligence, as the government pushes legal reforms and investments to strengthen domestic AI development.

TOKYO (Reuters) - Japan could fall prey to a new form of colonialism in the AI era if it fails to ​keep pace with the technology's rapid development, the country's digital ‌minister warned on Friday.

"I hope many Japanese people understand that we need to press ahead with AI development, or we'll end up becoming an 'AI colony'," ​Digital Minister Hisashi Matsumoto said.
Matsumoto raised the warning as he ​defended a bill to amend Japan's personal data protection law ⁠to allow AI developers to train models with data such ​as medical and criminal records without the individuals' consent.

"The point of this ​change is that, with AI development moving so fast, Japan can't afford to fall behind," he told a press briefing. Some opposition parties have expressed concerns about the ​government-drafted bill, citing data breach risks.

The bill, which passed the ​lower house of parliament last week, is now being debated in the upper house.

Japan's ‌government ⁠has ramped up efforts, from subsidies and targeted procurement to legal changes, to support domestic AI development amid an intensifying global tech race led by the U.S. and China.

While Japan has courted investment and greater ​access to technology ​from U.S. companies such ⁠as Microsoft (MSFT.O) and OpenAI under U.S.-Japan security ties, it has also backed domestic players including SoftBank (9434.T), Sakura Internet (3778.T), and chipmakers to ​expand homegrown AI models and computing capacity.

Japan's push ​to keep ⁠pace with the global AI race reflects a broader anxiety among governments worldwide, fearful of falling behind and becoming ever more dependent on ⁠foreign ​technology. Earlier this week, the European Union unveiled ​a new technology sovereignty package to boost domestic cloud, AI and semiconductor industries and cut ​reliance on U.S. tech firms.