Taiwan Establishes Comprehensive AI Governance Framework

Taiwan Passes Landmark AI Governance Framework

Taiwan’s Legislative Yuan has approved a new law establishing a national framework for governing AI, marking a major step in shaping how the technology will be developed and used across the island.

The Artificial Intelligence Basic Act

The Artificial Intelligence Basic Act sets out guiding principles for AI governance and formally designates the National Science and Technology Council (NSTC) as the central authority responsible for AI policy and coordination. The legislation requires the government to actively promote AI research and applications while prioritizing social welfare, digital equity, innovation, and national competitiveness.

Core Principles of AI Development

Under the law, AI development in Taiwan must follow seven core principles:

  • Sustainability and well-being
  • Human autonomy
  • Privacy and data governance
  • Cybersecurity and safety
  • Transparency and explainability
  • Fairness and non-discrimination
  • Accountability

The act introduces clear red lines, stating that AI systems must not:

  • endanger lives, freedoms, or property
  • undermine social order or national security
  • harm the environment
  • involve bias, discrimination, false advertising, misinformation, or fabrication

Oversight and Governance Structures

While the act outlines high-level principles rather than detailed enforcement mechanisms, it assigns oversight responsibility to the NSTC. This provision was adopted with the backing of lawmakers from the Chinese Nationalist Party (KMT) and the Taiwan People’s Party, despite objections from the Democratic Progressive Party, which argued that basic laws traditionally do not specify a governing authority.

The legislation mandates the Executive Yuan to establish a national AI strategy committee chaired by the premier. This committee will include representatives from academia, industry, and central and local government, tasked with shaping national AI development guidelines. It must convene at least once a year, with administrative support provided by the NSTC.

Funding and Data Management

Beyond governance structures, the act calls on the government to allocate funding—within fiscal limits—for AI research, applications, and infrastructure. It emphasizes data openness alongside strong personal data protection, risk-based AI management aligned with international standards, and safeguards for labor rights, including retraining and employment support for workers displaced by AI.

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