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Japan passes law allowing firms to collect personal data for AI

A photo showing users how their personal data is tracked and shared across different platforms. (Adobe Stock Photo)
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A photo showing users how their personal data is tracked and shared across different platforms. (Adobe Stock Photo)
July 11, 2026 10:04 AM GMT+03:00

Japan's parliament has approved a revised personal data protection law allowing companies to use sensitive information without individual consent, in a move aimed at supporting domestic artificial intelligence development, Kyodo News reported.

The amendment to the Act on the Protection of Personal Information creates an exception that permits businesses and other organizations to collect personal data without consent, provided the data is used solely for statistical analysis and AI development.

The changes apply only to data considered low risk to individuals' rights, including cases in which developers compile statistics for research.

The measure is intended to strengthen Japan's competitiveness in the global AI race.

Companies that misuse the personal data of more than 1,000 people will face a fine equivalent to the profit generated from that data, according to the law.

Collecting a child's image will require parental approval, and the use of data describing minors will be subject to a best-interests assessment.

Businesses relying on the new exception must disclose information such as the acquirer's identity and the intended statistical use, and third-party data transfers require a written agreement confirming the data will be used solely for that purpose.

Data for advanced tech

Parliament also passed separate legislation allowing the government to provide data to private-sector companies and research institutes to develop advanced technologies, including AI and autonomous driving systems.

A joint review board comprising Japan's Digital Agency and the Personal Information Protection Commission will vet applications for access to government-held datasets.

July 11, 2026 10:04 AM GMT+03:00
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