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Taiwan passes new AI law to strengthen governance, innovation
Taiwan’s Legislative Yuan has approved the Artificial Intelligence Basic Act, setting out principles for AI governance and designating the National Science and Technology Council (NSTC) as the main governing authority.
The law mandates government support for AI research and applications, with an emphasis on social welfare, digital equity, innovation, and national competitiveness.
It sets out seven core principles for AI development, including sustainability and well-being, human autonomy, privacy and data governance, cybersecurity and safety, transparency and explainability, fairness and non-discrimination, and accountability.
The act prohibits AI uses that could endanger lives, freedoms, property, social order, national security, or the environment, as well as those involving bias, discrimination, false ad, misinformation, or fabrication.
The law does not specify enforcement measures for these principles.
It also requires the formation of a national AI strategy committee, led by the premier and including scholars, industry representatives, agency heads, and local government leaders to set development guidelines.
Funding for AI projects and support for worker retraining and employment assistance are also included under the act.
🔗 Source: Focus Taiwan
🧠 Food for thought
Implications, context, and why it matters.
- Taiwan’s AI Basic Act sets seven principles and bans harmful uses 1. Groups including the Taiwan Association for Human Rights and Judicial Reform Foundation said earlier drafts lacked concrete rules and clear steps 2.
- The law names the National Science and Technology Council (NSTC) as central authority 1. Enforcement has sat with sector regulators by industry 3, so roles and conflict resolution are unclear.
- The public text lacks a detailed risk classification and dedicated oversight, unlike the EU AI Act.
- Earlier drafts of Article 5 could weaken laws like the Personal Data Protection Act (Taiwan’s privacy law) by favoring AI development 2. The final text on this remains unclear.
- The act backs AI research and worker retraining. That support creates immediate demand for compliance tools, model governance software, and training to help teams meet the seven principles.
- A 2026 joint program with Germany’s federal research ministry offers NT$5 million (New Taiwan dollar) a year for three-year projects in Edge AI (running models on or near devices) and Smart Manufacturing 4. A Taiwan-Sweden program invests over SEK 70 million (Swedish krona) in ten strategic projects 5.
- Tech operators and consultancies should watch NSTC grant calls, plus ministries’ budgets in Taiwan. Time outreach for compliance products, with a focus on explainability tools and bias detection for fairness and transparency requirements.
- The Financial Supervisory Commission (Taiwan’s financial regulator) issued AI guidelines for financial institutions that stress accountability and transparency 6. Sector rules will likely follow, which opens room for industry-tailored compliance.
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