Overview of the 2023 White Paper on Information andCommunications
Economic Research Office
ICT Strategy Policy Division
Information and Communications Bureau
Ministry of Internal Affairs and Communications
The focus of this White Paper on Information andCommunications is “Toward Realizing the Resilient and Sound
Data Flow Society for the New Era.” It gives an overview of theprogress of data flow, which accompanied the advancement oftelecommunications infrastructure in Japan, and analyzes thecurrent situation, challenges, and new trends in data flow anduse. It also surveys initiatives toward a data flow society whereeveryone can enjoy the benefits of diverse services using data.

to generate innovative businesses and markets. Currently, various
services provided by platform providers have penetrated deeply
into our lives, making everyday life significantly more convenient.
At the same time, through the provision of a variety ofservices, platform providers have been acquiring and accumulatinga huge amount of data, including attribute data, such asnames, usernames, IP addresses, and data on purchasing andcommunication behaviors and various other activities.

Part 1. The Current status and Issues of Data
Distribution and Utilization
Chapter 1. The Continuing Acceleration of Data
Distribution and Data Utilization

2. Concerns about transparency and appropriateness of dataacquisition and utilization by Platform Providers
According to the results of the survey, the percentage of
respondents who were “aware” (the sum of “well aware” and“somewhat aware”) of providing personal data when using services
and applications was the highest in the United States (90.5%),
against about 40% (42.2%) in Japan. Regarding whether or notthey felt anxious about providing personal data, the highest
percentage of respondents who answered they were “concerned”(the sum of “very concerned” and “somewhat concerned”) was
66.5% in Germany, with 58.4% in Japan.

1. The explosive increase in data distribution
With the advancement of telecommunications infrastructure
and the spread and diversification of digital services, thevolume of data distribution on networks in Japan has increased
exponentially. Since the COVID-19 pandemic, digitalization hasprogressed, which has enabled us to live without physical contact
and work without face-to-face interaction. As of November
2022, the total download traffic of fixed-line broadband service
subscribers increased by 23.7% year on year, and that of mobile
communications subscribers as of September 2022 increased by
23.4% year on year. Globally, the volumes of data traffic and data
distributed especially through mobile terminals have increased
significantly and are expected in increase further.
2. The awareness of companies regarding the provision andutilization of data
While Japanese companies’ utilization of data is processing,
the rate of their utilization is low compared to other countries.
The result of a survey of companies showed that 52.8% of Japanesecompanies have been “using” personal data, against 81.9% of U.S.
companies.
Many Japanese companies cited “lack of methods for utilizingdata” and “unclear cost-effectiveness and lack of human resources
for handling data (processing and analysis, etc.)” as challenges and
impediments to date usage.

Chapter 2. Concentration of Data among
Platform Providers
1. Data Acquisition and Storage by Platform Providers
As information and communication technology advanced,and massive amounts of data are being generated and distributed,
platform providers have grown rapidly as innovators that continue

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■ Figure 1: Awareness and concerns about providing
personal data(Source) Ministry of Internal Affairs and Communications (MIC, 2023),"Survey Research on Advancement of ICT Infrastructure andFlow of Digital Data and Information"

Also, for all the four countries surveyed ( Japan, U.S.,
Germany, and China), “provider’s assurance of sufficient security”
was the most important consideration for users in providing
personal data to platform providers.

Chapter 3. Spread of Disinformation and
Misinformation on the Internet
1. The current status(1) The spread of the attention economy
Amid the vast amount of information circulating on theInternet, to attract more attention and clicks from users, some
platforms generate articles with sensational and provocative titles
and content that are not based on facts but solely on speculation.
This so-called “attention economy” is structured in a way that
promotes the spread of disinformation and misinformation and thefueling of controversy on the Internet.
(2) Filter bubbles and echo chambers
By continuing to receive information distributed byalgorithms, users tend to only gain information of their owninterest. This is called a “filter bubble” that surrounds users with afilm of information. Many thoughts and opinions similar to theirown are concentrated inside this bubble, and opposing thoughts
and opinions are eliminated (filtered out), making it difficult to
notice the latter’s existence. Also, as a result of communication
with users of similar interests, such as in social media, users
receive only opinions similar to their own. This leads to the socalled “echo chamber,” where only specific opinions and ideas areamplified. By repeatedly hearing similar opinions, they tend tobelieve that they are correct and cannot be mistaken.

misinformation created for the purpose of earning advertising
revenue is circulating and being spread and amplified by bots.
Recently, there have been cases where fake images andvideos created using deepfake technology have spread either
unintentionally or intentionally. Already, anyone can easily makefake images simply by typing in a few words using AI, raisingconcerns about the democratization of deepfake technology.
2. Consumer awareness of the characteristics of social media
and other platform services
The percentage of respondents who replied that they were“aware” (the sum of “well aware” and “more or less aware”) ofsocial media’s tendency to expose users disproportionately toopinions and thoughts similar to their own was less than 40%(38.1%) in Japan, while 70% to 80% in the three countries otherthan Japan. Looking at Japan by age group, the proportion of
respondents in their 50s and in their 60s and above who repliedthat they were “aware” was lower than that of other age groups.
■ Figure 2: Awareness of social media’s tendency toexpose users disproportionately to opinions
and thoughts similar to their own(Source) MIC (2023), “Survey Research on Advancement of ICTInfrastructure and Flow of Digital Data and Information”(3) The distribution of illegal and harmful information
The number of consultations received at the Illegal andHarmful Information Consultation Center, which is operated
through MIC consignment, continues to remain high, with 5,745
received in FY2022.
Also, according to a questionnaire survey＊1 conducted onsocial media users, about half (50.9%) of respondents said they had
seen defamatory posts on the Internet (slander).
(4) The spread of disinformation and misinformation
A characteristic of social media platform services isthat any user can easily transmit (post) information, and thatdisinformation and misleading information is easily disseminated.
This is considered to be one of the reasons why people frequently
come into contact with disinformation on social media. Also, withthe spread of the attention economy, much disinformation and

3. Digital literacy
Improving digital literacy is very important in order to prevent
users from being misled by illegal and harmful information,
disinformation and misinformation. A survey on the actual
situation of disinformation and misinformation in Japan＊2 showedthat the higher their media literacy, the more likely users are to＊1 Document 2 from the 40th session of the MIC Platform Service Study Group, “Questionnaire survey on the distribution of illegal and harmful information on the Internet” by
Mitsubishi Research Institute (MRI).
＊2 International University of Japan GLOCOM, “Innovation Nippon: Understanding the Actual Situation of disinformation and Misinformation in Japan and Examining Social Responses”

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recognize disinformation or misinformation, and the less likely
they are to spread such information.
4. The promotion of fact-checking
In regard to fact-checking, an activity aimed at verifying theauthenticity of information, the percentage of respondents in Japan
who answered they were “aware” (total of “aware of the meaningand specifics,” “somewhat aware of the meaning and specifics,”
and “heard of the term”) was the lowest (46.5%) among thesurveyed countries. Although the awareness of fact-checking inJapan is increasing, it is still low compared to other countries.
■ Figure 3: Level of awareness of fact-checking(Source) MIC, “2021 Survey on Awareness about False Information in
Japan and Abroad”

Part 2: Toward realizing a resilient and sounddata flow society for the new era
Chapter 1: New trends in data flow and use
The implementation of 5G networks that enable ultra-highspeed, ultra-high-capacity data flow and the further advancementof cross-reality (XR) technology and AI are creating new trends
in the approaches to data distribution and management and in theservices that utilize data.
1. Web3
While issues associated with excessive concentration of data
among platform providers have become apparent, Web3 is gaining
attention as a new approach to data management and distribution.
Web3 is considered “decentralized” because it builds a new digital
economic ecosystem where independent users directly interconnect
on a decentralized network based on blockchain technology,
without relying on a specific platform.
This kind of Web3 environment reduces transaction costs andenables co-creating, storing, and exchanging all kinds of value
across borders and platforms. It therefore has the potential tocreate a significant social impact, such as through the constructionof new business models in the cultural and economic domains,investment and economic revitalization, and the promotion of theresolution of social issues.

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2. Metaverse and digital twins(1) Metaverse
With the advancement of communication networks and XR
technologies, attention has focused on the “metaverse,” whichenables the transmission, experience, and sharing of new values
linked to the real world and virtual space.
Metaverse is gaining recognition in Japan. Various services arebeing provided in the entertainment field such as music events andshopping on the metaverse. In addition, attempts have been madeto utilize metaverse spaces for providing learning and employment
opportunities, as well as for community building in which realcities and virtual spaces are linked.
For example, the University of Tokyo launched the Metaverse
School of Engineering in October 2022 to “offer an education in
the field of engineering utilizing digital technology with a focus
on realizing a society where the latest information and practicalengineering skills to fulfill personal goals become available to all.”(2) Digital Twins
A digital twin is a technology that builds a digital
representation of a physical entity in a virtual space based on data
gathered from the real world. It is expected to provide benefits
such as optimized production, improved operational efficiency,
reduced time and costs, and the ability to perform simulations notpossible in the real world.
Digital twins began to be used mainly by users in the
manufacturing industry, such as in the aviation industry andmanufacturing lines, and are now being used in a wide range offields, including national land planning, urban planning, anddisaster prevention.
In the field of disaster prevention, since 2019, Shizuoka
Prefecture has been promoting the Virtual Shizuoka initiative,
which acquires three-dimensional information, such as ontopography and buildings throughout the prefecture, aspoint cloud data and releases it as open data. The prefectural
government compares and analyzes information from Virtual
Shizuoka and aerial photographs taken in the past with 3D datameasured by drones at points where landslides occurred during
disasters. In the landslide disaster in Atami City that occurredin July 2021, data were used for early assessment of damage andprevention of secondary disasters.
3. Generative AI(1) Trends in generative AI
Generative AI technology, which is used for the purposeof generating and creating information, an area traditionallydominated by humans, has been rapidly developing.
OpenAI announced GPT-3, a large-scale language modelwith 175 billion parameters, in May 2020, ChatGPT chatbot
based on GPT 3.5 in November 2022, and GPT-4 in March2023. In 2022, prompt-based image generation AI (also called
text-to-image AI), which generates images with text entered byusers, was launched, enabling the use of AI to draw images forhumans. Other generative AI for a variety of other purposes havebeen released, including AI that creates program source code andAI that composes music from text, under human instructions.
(2) Discussions on generative AI
The negative aspects of generative AI, however, are becoming
apparent, such as the unintentional or intentional spread of
fake images and videos created using it, causing violation of theinterests and rights of others and social disruption. With image
generation AI readily available, anyone can easily create andspread high-quality fake images. Also, it has been pointed outthat it may be causing infringement of intellectual property rights
and an economic impact on artists, illustrators, and other contentcreators.
In addition to stipulating the terms and conditions for use by
the companies that provide AI services, it is necessary to ensurethat these terms and conditions are properly conveyed to users andto encourage the ethical use of services based on those stipulations.
Also, in regard to multilateral cooperation on the handlingof generative AI, discussions were held at the G7 Digital andTechnology Ministers’ Meeting held in Takasaki City, Gunma
Prefecture, in April 2023 on the “Promotion of responsible AIand AI governance.” Through the G7 Digital and Technology
Ministerial Declaration adopted at the meeting, an agreement wasreached on an action plan to promote global interoperability of AI

governance and to hold a forum for discussion of generative AI assoon as possible.
Furthermore, at the G7 Summit held in Hiroshima City in
May of the same year, Heads of States shared a recognition of theimportance of international discussions on AI governance and of
the interoperability of AI governance. A summit level agreement
was reached to establish the Hiroshima AI Process by the end ofthe year to discuss generative AI.

Chapter 2: Toward realizing a diverse data flow
society
As we have seen, with the advancement of communication
infrastructures and the spread of smartphones, various digital
services utilizing data have become indispensable to our lives. New
forms of data utilization, such as the metaverse and digital twins,
are attracting attention and are expected to contribute to resolving
various social and economic issues in Japan, including regional
revitalization, disaster prevention, and the realization of diverse
work styles.
In order to promote the safe and appropriate distribution ofdata and realize a society in which everyone can enjoy the benefitsof data utilization, it is important to promote initiatives centeredon the following four axes: (1) resilient telecommunications
networks supporting data distribution; (2) early realization ofBeyond 5G supporting ultra-high-speed, ultra-large-capacity datadistribution; (3) contributions to standardization and developmentof international rules, and (4) realization of a diverse and soundinformation space.

■ Figure 4: Crucial initiatives toward realizing a society where everyone can enjoy the benefits of data utilization

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