Clifford Chance

Japanese law issues surrounding Generative AI: ChatGPT, BARD and beyond

5 October 2023

Organisations and governments around the world are attempting to harness the power of generative AI and navigate a path for safe and secure use. In Japan, those exploring the opportunities presented by generative AI will need to consider complex legal issues, including in relation to copyright, data privacy and liability.

Copyright issues can arise at both the training and use stages of these AI systems. While using copyrighted materials for training generative AI models is generally allowed under certain conditions, potential conflicts with copyright holders need careful consideration. The ability to copyright AI-based works depends on creative input by a human. Data privacy concerns arise due to the collection and processing of vast amounts of data, where this includes personal information. Adherence to Japan’s Act on the Protection of Personal Information (APPI) is crucial. Organisations must ensure that personal data used in generative AI aligns with the stated purpose and be cautious when third-party operators might use data differently. Liability for harms arising in relation to generative AI outputs remains complex in Japanese law. Risk management strategies, including well-drafted terms of service and disclaimers, can mitigate potential legal exposure.

While Japan has not enacted specific AI legislation, the regulatory landscape may evolve to address emerging AI technologies. Staying informed about legal developments and crafting effective risk management strategies is vital to ensure compliance and to minimise legal risks.

This briefing provides an overview of some of the key issues organisations should consider under Japanese law when using or developing generative AI.

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