Taiwan Enacted an AI Basic Act to Foster Innovation and Manage Risks

Taiwan Enacted an AI Basic Act to Foster Innovation and Manage Risks
Unsplash - Timo Volz

Taiwan enacted the Artificial Intelligence Fundamental Act, laying the legal foundations for human-centred AI development. The legislation guarantees the protection of fundamental rights while creating a safe application environment, and positions Taiwan as a key player in global AI governance.

The bill was drafted by the National Science and Technology Council, after which the Ministry of Digital Affairs took over the legislative process and began developing an AI risk classification framework. The act aligns its definition of AI with the EU AI Act and sets out seven core principles: sustainable development and well-being, human autonomy, privacy protection and data governance, cybersecurity and safety, transparency and explainability, fairness and non-discrimination, and accountability. For AI systems classified as high-risk, the law mandates appropriate warnings, with risk classification conducted jointly by the MODA and relevant government agencies through multi-stakeholder consultations. Ken-Ying Tseng, a partner at Lee and Li, Attorneys at Law, highlighted that one of the act's most consequential provisions requires the government to review existing laws and enact new legislation within two years to align with the act's principles.

Taiwan builds on its semiconductor advantage to create a human-centred AI innovation ecosystem, while also providing for an open data framework, tax incentives and the possibility of a regulatory sandbox. By developing an internationally interoperable risk management framework, the country aims to set a regional benchmark for responsible AI development.

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Taiwan’s strategic leap into AI: Enacting the AI Basic Act to foster innovation, governance | IAPP
Lee and Li, Attorneys at Law’s Ken-Ying Tseng writes Taiwan’s AI Basic Act, which came into effect 14 Jan., establishes the government’s foundational stance on AI and serves as a guiding framework for future policies, regulations and legal interpretations.

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Legislative Yuan Passes Artificial Intelligence Fundamental Act in Third Reading, Laying Foundation for AI Innovation, Security Governance in Taiwan|Press Releases - News and Releases|Ministry of Digital Affairs
Legislative Yuan Passes Artificial Intelligence Fundamental Act in Third Reading, Laying Foundation for AI Innovation, Security Governance in Taiwan

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Artificial Intelligence Fundamental Act passes - Taiwan Today
The Legislative Yuan passed the Artificial Intelligence Fundamental Act Dec. 23, marking a milestone in government AI innovation and security governance promotion.   According to the Ministry o…