Why Japan’s AI Contract Checklist Encourages Safer Collaborations Between Developers and Enterprises Across Various Industrial Sectors

AI Checklist Revealed by METI

On 18 February 2025, Japan’s Ministry of Economy, Trade and Industry (METI) introduced a detailed Checklist of Contracts Concerning the Use and Development of AI. It arrives at a time when many businesses are looking to harness artificial intelligence, yet remain uncertain about the necessary legal frameworks.

The newly published document is intended to address those worries by providing a straightforward set of guidelines to help firms stay in line with existing rules and regulations.

By using the checklist, businesses can reduce potential risks, safeguard intellectual property, and respect personal data boundaries when collaborating on AI-driven projects.

A Safeguard for Intellectual Property and Personal Data

One of the highlights in this checklist involves shielding ownership rights and sensitive details. METI points out that companies often share or pool various datasets during AI development, which can open the door to legal or operational pitfalls if not properly addressed.

By making these contractual points explicit, the authorities aim to protect trade secrets, prevent unapproved data usage, and clarify how intellectual property is handled.

Crucially, the guidance links its recommendations to Japan’s Act on the Protection of Personal Information, thus laying out how data provision should be handled both domestically and abroad.

Key Features Across Various Use Cases

The checklist is not confined to one type of AI deal. It offers practical suggestions whether a company is merely using an existing AI service, customising it for niche requirements, or creating a fresh model from scratch.

In each scenario, the checklist covers points like setting boundaries on data sharing, recognising ownership over project outputs, and ensuring that security provisions are up to scratch. By detailing these items in advance, the document helps firms avoid awkward misunderstandings once a project is well underway.

Practical Adaptation for Different Settings

What sets this checklist apart is how METI fashioned it to be flexibly adopted. Rather than dictating a single approach, it provides base guidelines that can be merged with specific project factors, including the organisation’s size, chosen sector, and the nature of the AI being developed.

This adaptability ensures that small start-ups, multinational enterprises, and public institutions can all benefit.

In the end, the Ministry seeks to encourage thorough contract discussions, where each party knows its role and the responsibilities tied to using advanced AI solutions.