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Japan has a new warning for ChatGPT-maker OpenAI: What is it and how it may impact the company

Japan joins the long list of countries to show its concern about the unchecked growth of artificial intelligence. According to a report by Reuters, the country’s privacy watchdog has warned Microsoft-backed AI startup OpenAI. Japan’s regulator body has asked the company not to collect sensitive data without people's permission.
In a statement, the country’s Personal Information Protection Commission has ordered OpenAI to limit the sensitive data it collects for machine learning. The statement also added that the watchdog may take further action if it has more concerns.

The watchdog also noted the need to balance privacy concerns with the potential benefits of generative AI. This includes accelerating innovation and dealing with problems like climate change.

Why Japan is important for OpenaAI
According to analytics firm Similarweb, Japan is the third-largest source of traffic to OpenAI's website. In April, the company’s CEO Sam Altman also met with Prime Minister Fumio Kishida with a plan to expand in Japan. The meeting took place ahead of the Group of Seven (G7) leaders summit where Kishida led a discussion on regulating AI.

Meanwhile, Japan has been on the back foot with some of the recent technology trends. However, as the country’s population shrinks, it seems to have a greater incentive to keep pace with advances in AI and robotics to maintain productivity.

Other countries looking for AI regulation
Regulators across the world are racing to draft rules that will govern the use of generative AI. The technology that can create text and images as well as has the potential to have more impact than the arrival of the internet.

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The EU has been a global trendsetter in tech regulation and is also working on what could be the first set of rules to govern AI.

Last week, Altman said OpenAI had no plans to exit Europe after earlier suggesting that the startup might do so if EU regulations were too strict to comply with.

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