Here is why Japan is leaning toward softer rules governing the use of AI than the EU

According to a source of the discussions, Japan is leaning toward softer AI usage regulations than the European Union since it hopes the technology would spur economic growth and position it as a global leader in advanced semiconductors.

The person, who wished to remain anonymous because they were not authorized to speak with the media, stated that the goal was to develop a strategy for AI by the end of the year that would likely be more in line with the U.S. mindset than the strict standards promoted by the EU.

With criteria like corporations reporting copyrighted material used to train AI systems that generate content like text and images, a milder Japanese approach could hinder EU ambitions to establish its standards as a global baseline.

This week, Thierry Breton, the EU's industry commissioner, is in Tokyo to advance the bloc's approach to developing AI regulations and strengthening semiconductor collaboration.

The government representative should have mentioned the areas where Japanese regulations would probably differ from EU ones.

Prof. Yutaka Matsuo of The University of Tokyo, who serves as the government's AI policy council's chair, criticized the EU's regulations as being "a little too strict" and claimed that it is "almost impossible" to specify the copyrighted materials used for deep learning.

"With the EU, the issue is less about how to promote innovation and more about making already large companies take responsibility," said Matsuo, who also serves as the chair of the Japan Deep Learning Association and as an independent director on the board of Masayoshi Son's SoftBank Group.

The potential for generative AI to revolutionize business and society as a whole is what is exciting and concerning about the developments being made by companies like Microsoft-backed company OpenAI.

Because of its promise, the United States and other industrial democracies are competing with China to develop AI and other technologies like quantum computers and sophisticated semiconductors.

"There are some things that are a concern, and I think these things probably should be a concern for any democracy," Breton added.

Breton said of the EU's regulatory strategy, "I think it's important to explain what we did with like-minded partners and friends like Japan or the U.S."

AI may help Japan deal with its population loss, leading to a workforce crisis.

According to the source, it might also increase demand for the sophisticated processors that Rapidus, a government-backed startup, aims to produce as part of an industrial strategy to restore Japan's lost technological edge.

According to experts, Japan is far behind the United States regarding computing power, measured by the availability of graphics processing units (GPUs) required to train AI.

Prof. Matsuo remarked that even if the number of GPUs in Japan were multiplied by ten, the number would likely still need to catch up to what OpenAI offers.