Since civil servants in the Japanese government are, in principle, employed for life, there are few officials with knowledge of AI technology, with the exception of some in the MIC and METI. In order to implement the AI Act—including measures related to AI governance—it is essential to quickly strengthen the AI-related capabilities of government organizations by recruiting new talent and training existing officials.
Another concern is that the establishment of the new AI strategic headquarters may create new vertical divisions and fragmentation of authority within the cabinet. It will be necessary to develop an institutional framework to advance cross-sectoral strategic planning in the cabinet to promote a comprehensive digital innovation strategy.
The Recent Transformation of Global AI Governance
A Shift from AI Safety and Risks to AI Opportunity and National Interest
The landscape of global AI governance has transformed drastically since the beginning of 2025. Specifically, the priorities of the second Trump administration and the themes addressed at the Paris AI Action Summit in January–February 2025 suggest emphasis on AI innovation instead of AI governance, and countries around the world are now shifting their policies in favor of AI innovation.
These shifts include promoting investment in AI (as seen in the United States, France, and the European Union) and deregulation (as seen in the United States, Canada, the United Kingdom, and the European Union). However, as each country emphasizes the promotion of its own national interests, conflicts among major developed countries are coming to the surface—in particular, tension between the United States and the European Union under the Trump administration, which were highlighted when Vice President JD Vance strongly criticized EU digital and AI regulatory policies at the Paris summit. There also seems to be a divergence between the United Kingdom and France, since the United Kingdom refused to sign the summit’s declarations. Under these circumstances, there is concern about the future capacity of the G7 to promote international cooperation on AI governance.
Another trend in the debate on global AI governance is the increased participation of countries in the Global South. India served as a co-chair of the 2025 Paris AI Action Summit and will chair the next AI summit; its presence is expected to continue to increase in the future. China, an AI superpower, has been advancing a standardization strategy domestically, promoting a resolution on AI capacity building at the United Nations, and actively engaging developing countries in the Global South.
Japan’s Coordinating Role in a Period of Transformation
Although global AI policies are shifting from governance toward innovation, the former will remain important due to the potential social risks of AI. As a promoter of a soft-law approach domestically and interoperability globally, Japan’s coordinating role on the diplomatic stage will be increasingly important.
If tension among G7 members continues, Japan, which is in a relatively neutral position and has been actively working on the Hiroshima AI process in recent years, can coordinate bilaterally with the United States and the European Union and encourage a consensus position on AI governance.
Japan can also play a role in strengthening relations with countries of the Global South, including India, with which it has developed strategic ties in recent years. Japan established the Friends Group of the Hiroshima AI Process in May 2024, and will continue to prioritize outreach to the Global South as China tries to enhance its own influence in the developing world. But the capacity challenges in the Japanese government noted above will have to be addressed in order to sustain Japan’s global leadership role in AI governance.
U.S.-Japan Cooperation on AI Governance
U.S.-Japan Collaboration on AI During the Biden Administration
U.S.-Japan collaboration on AI strategies progressed steadily during the Biden administration. The April 2024 Kishida-Biden joint statement specifically described Microsoft’s investment in Japan and cooperation in the field of AI by research institutes in both countries. AI governance strategies were discussed in the “Japan-U.S. Dialogue on the Digital Economy.” However, most of the discussions on AI governance focused on cooperation through multilateral institutions such as the G7 and the OECD.
In the context of economic security, the Japan-U.S. Economic Policy Consultative Committee (the so-called economic “2+2”) has been underway since July 2022, and the second joint statement (November 2023) includes AI as an emerging and critical technology, emphasizes G7 collaboration on AI governance, and encourages collaboration between the National Institute of Standards and Technology (NIST) and Japan’s Information Technology Promotion Agency (IPA) as partner AISIs.
U.S.-Japan Collaboration on AI During the Trump Administration
U.S. relations with major developed countries, such as the members of the European Union, have become more complex since the inauguration of the second Trump administration in January 2025. However, as indicated by the February 2025 summit meeting between Prime Minister Ishiba and President Trump, the U.S.-Japan relationship seems relatively stable as of this writing.
In a joint statement, the two leaders indicated that they will seek to collaborate to lead the world in the development of AI and other critical technologies in order to elevate their economic partnership to the next level. To that end, they instructed the relevant ministers to strengthen U.S.-Japan economic cooperation.
In terms of AI investment, it is noteworthy that SoftBank, Open AI, and others announced the Stargate Project in the presence of President Trump on January 21, 2025; these companies also announced a partnership on “Cristal Intelligence” on February 3, just before the bilateral summit meeting.
The direction of AI policy under the second Trump administration is gradually becoming clear after the repeal of the Biden administration’s executive order on AI policies and the issuance of a Trump executive order for a new action plan. Despite these steps, as the debate surrounding global AI governance undergoes transformational changes, the Trump administration’s AI governance strategy remains uncertain. Given that the United States and Japan are partners that can have a significant impact on global AI governance, the first challenge will be to develop a common understanding of the current situation and then to craft a joint strategy for the future direction of AI governance.
RecommendationsAI Capacity Building for the Japanese Government
The Japanese government proposed the AI Act recognizing the increased importance of AI technologies in society. Strengthening AI expertise across the government is imperative to fully execute the act’s stipulations.
Therefore, the Japanese government should develop a plan to increase the capacity for managing AI—not just at the cabinet level, but across the entire government—by building an ecosystem that includes academia and the private sector. Japan’s coming AI Strategic Headquarters should pursue the following:
Formulate comprehensive AI, digital, and innovation strategies and relay instructions for execution to government ministries based on extensive and up-to-date knowledge of AI technological and industrial trends.Coordinate and publish AI governance guidelines in an agile way through a multi-stakeholder process in line with international norms.Enable the entire government to respond quickly to various real social risks and take appropriate countermeasures.
In addition, the government should immediately promote the use of AI in all ministries and develop an initiative to recruit and develop AI talent.
Strengthening Japan’s Coordination Role on Global AI Governance
Japan’s leadership role on AI governance will need to expand beyond the G7 to include following initiatives:
Bilateral coordination with key players such as the United States and the European Union and enhanced outreach to developing countries of the Global South, such as India.Building on efforts not only in the G7 and OECD but also other institutions such as the Quad (U.S.-Japan-Australia-India cooperation mechanism) and the United Nations.
Sharing a Common Understanding of Future Global AI Governance
Because Japan and the United States, as partners, could have significant influence on global AI governance, they must develop a common understanding on AI governance and a shared future vision for global AI governance systems. Priorities should include the following:
The future development of AI technology and governance in a global context.The role of G7 initiatives in global AI governance strategy as well as the involvement of Global South countries such as India.Responding to China’s engagement of the Global South with economic security in mind.
In addition, ongoing collaboration between research institutes such as NIST and IPA and between businesses in both countries will form the basis for future cooperation on AI.
AloJapan.com