Taiwan's strategic leap into AI: Enacting the AI Basic Act to foster innovation, governance

Taiwan has long been recognized as a pivotal player in the global technology landscape, particularly in semiconductor manufacturing and chip production. As artificial intelligence continues to reshape industries worldwide, Taiwan is positioning itself to become a leader in AI development, especially by creating its own Traditional Chinese large language model. 

To this end, after nearly two years of extensive discussion, consultation and debate, Taiwan enacted the AI Basic Act, which went into effect 14 Jan. This landmark legislation establishes the government's foundational stance on AI and serves as a guiding framework for future policies, regulations and legal interpretations.

Defining AI and the institutional framework

The act adopts a definition of AI that closely aligns with the EU AI Act, emphasizing AI systems as technologies that provide humans with predictions, content, recommendations or decisions. This alignment signals Taiwan's intent to harmonize its regulatory approach with international standards, facilitating cross-border cooperation and market integration.

The law designates the National Science and Technology Council as the primary regulator overseeing its implementation. However, many critical operational responsibilities are delegated to the Ministry of Digital Affairs, which will play a central role in managing AI governance, risk assessment and policy promotion.

Seven fundamental principles guiding AI governance

The AI Basic Act articulates seven core principles that will underpin Taiwan's AI ecosystem and guide the formation of future policies and regulations: sustainable development and well-being; human autonomy; privacy protection and data governance; cybersecurity and safety; transparency and explainability; fairness and nondiscrimination; and accountability.

The explicit inclusion of accountability marks a significant milestone in Taiwan's legal landscape, emphasizing the importance of a governance framework for AI deployment.

Responsibilities and obligations under the AI Basic Act