Japan is paving the way for a more lenient approach to AI regulation, as an official familiar with the deliberations revealed to Reuters. The Japanese government is actively working to develop an AI framework by the year's end, aiming to align its approach more closely with the US rather than adhering to the EU's stringent regulations. This strategy is driven by the belief that AI is a critical tool for driving economic growth, while a more lenient approach is believed to help Japan solidify Japan's position as a leader in advanced chip and AI technology. However, specific details regarding the upcoming regulations have not been disclosed yet.

The EU aims to promote its AI rule-making approach and enhance semiconductor cooperation, but Japan's more lenient stance on AI regulation could impede its efforts to establish its rules as a global benchmark. The EU requires companies to disclose copyrighted material used for AI training, which Japanese experts argue is impractical and stifles innovation. Professor Yutaka Matsuo believes that the EU's rules are excessively strict and prioritise holding large companies accountable rather than fostering innovation.