Summary

• Amid growing concern in Europe and elsewhere over the Generative AI – “ChatGPT,” the Japanese government has begun to take steps of promoting AI usage.

• Meanwhile, European countries and others are getting increasingly wary of the Generative AI “ChatGPT”.

• Within the scope of the policy framework and the essential demand for regulating AI, it is necessary to urgently review domestic laws, internal rules, and guidelines for users’ data privacy.

Content

In general, the attitude towards the Generative Artificial Intelligence (AI) – “ChatGPT,” remained wary, especially in the Europe region. For instance, the U.K. is developing its own version of LLM (Large Language Model); Italy has temporarily banned the use of the technology, etc. 

While countries are getting increasingly concerned, what is the Japanese policy approach?

In contrast to Italy – where “ChatGPT” usage is being scrutinized for potentially breaching laws by collecting vast amounts of personal data; the Japanese government acknowledges the significant potential of AI for enhancing economic growth and social development.

As a result, Tokyo has established a study group comprising practitioners from various related ministries and agencies, which is led by the Cabinet Office.

The Japanese government has initiated measures to encourage the utilization of AI. The head Ministry of Economy, Trade, and Industry (METI) – Minister Y. Nishimura has indicated a willingness to explore the future prospects of AI applications, e.g. in addressing parliamentary speeches. Besides, the METI is taking measures to manage the risks associated with the handling of confidential information.

During a visit to Japan on April 10 – Sam Altman, CEO of OpenAI, announced at the Prime Minister’s Office that the company intends to establish a Research and Development center within the country. The aim is to enhance the accuracy of AI applications in the Japanese language and culture by collaborating with the government.

So, what is the response of the big financial institutes and other Japanese conglomerates?

Mitsubishi UFJ Financial Group (MUFG) has revealed its plans to leverage chatbots for various tasks, including drafting approval requests and addressing internal inquiries, starting this summer. The ultimate goal is to boost productivity by eliminating the need for complex paperwork.

When the chatbot becomes widely utilized within the company, Mitsubishi UFJ Financial Group intends to collaborate with Microsoft Japan by the end of 2023 to create a bespoke AI bot that caters to the company’s specific business requirements. In the future, the technology may also be utilized to respond to online inquiries.

Sumitomo Mitsui Financial Group (SMFG) has initiated trial operations for the widespread implementation of SMBC-GPT – an AI assistant tool developed in collaboration with the Japan Research Institute (JRI), NEC, and Microsoft Japan. By questioning and designing prompts for SMBC-GPT, employees can generate sentences, summaries, translations, and source code in a chat format. 

The goal is to reduce the time needed for information gathering and enhance productivity. The company aims to launch this tool for all SMBC employees by this fall.

Such actions above by the Japanese METI and other firms like MUFG and SMFG are expected to motivate other significant Japanese companies to initiate similar applications. 

Apart from ensuring that employees can assess the precision of AI responses while using the tool, it is vital to swiftly review internal rules and guidelines to secure users’ data privacy and further related issues. 

This is a growing essentially demanding policy framework regarding  AI-related regulations and other relevant developments.

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