Balancing AI Governance and Innovation: Japan’s Soft Law and Tech Companies

Hiroshi Nakai, Senior Privacy Officer, Mercari

Kaei Ro, Counsel, Mori Hamada & Matsumoto

Toshiki Yano, Division Manager, Data Analytics Governance, Money Forward Inc.

In June 2025, Japan enacted its first AI-specific law, reflecting its evolving approach to AI governance. Rather than imposing rigid rules, Japan blends legal development, sector-specific guidance, and voluntary corporate practices. This session features a legal expert and privacy leaders from Japanese tech companies Mercari and Money Forward to discuss how businesses are responding to these regulatory shifts and using AI. We will explore public–private coordination, the role of data protection law, and cross-sectoral governance as Japan positions itself in the global AI landscape, especially through companies actively engaging with the broader Asian ecosystem.

What you will learn:

• How the evolving legal framework around Japan’s AI governance efforts aims for balance between innovation and governance.
• How Japan’s data protection law is being reviewed to better support responsible AI deployment.
• How Japanese companies are implementing AI policy and using AI to innovate in ways connected to Asia’s broader ecosystem.