To address issues surrounding AI such as disinformation and rights infringement, the Liberal Democratic Party's AI project team will draft preliminary rules, including penal regulations, for foundation model developers such as Microsoft-backed OpenAI, the Nikkei said.

The European Union earlier this month moved a step closer to adopting rules governing the use of AI models after EU countries endorsed a political deal reached in December.

Other governments including the United States and China are exploring ways to regulate the technology.

(Reporting by Satoshi Sugiyama and Kantaro Komiya; Editing by Himani Sarkar)