AI Basic Act: Taiwan’s Roadmap for AI Development in 2026
In 2026, Taiwan is set to enact the Artificial Intelligence Basic Act (AI Basic Act), a significant milestone in AI legislation that aims to establish a robust foundation for the country’s AI policy and regulatory framework.
Core Principles of the AI Basic Act
The AI Basic Act introduces seven fundamental principles to guide the development of AI in Taiwan:
- Sustainable development and well-being
- Human autonomy
- Privacy protection and data governance
- Cybersecurity and safety
- Transparency and explainability
- Fairness and non-discrimination
- Accountability
While the order of these principles does not denote their importance, the emphasis on sustainable development as the first principle reflects the government’s commitment to balance technological progress with societal welfare.
Regulatory Framework and Government Obligations
The AI Basic Act mandates the government to create comprehensive regulations governing the research, development, and application of AI technologies. In instances of conflict between new AI laws and existing regulations, the promotion of new technologies will take precedence, provided that the core principles are upheld.
The government is tasked with providing reasonable use measures and support throughout the AI development lifecycle, including training, testing, and impact assessment. This may also involve facilitating access to training data under the provisions of fair use.
Encouraging Innovation
To foster innovation and sustainable growth, the government will establish experimental environments such as regulatory sandboxes, similar to the EU’s approach under the AI Act. These environments will assist in the development of AI products and services.
Furthermore, the government must allocate sufficient budgetary resources to ensure the continuous implementation and development of AI policies.
Risk Classification and Management
The AI Basic Act categorizes AI risks into high-risk and non-high-risk applications. High-risk AI applications must carry appropriate warnings, and the Ministry of Digital Affairs (MODA) will play a crucial role in classifying these risks according to international standards.
If an AI application infringes on fundamental rights or disrupts societal order, regulators have the authority to restrict or prohibit such applications. This framework allows for sectoral regulators to propose new laws restricting certain AI uses.
Data Governance and Intellectual Property
The act emphasizes the importance of open data and data sharing to improve the quality of AI training data. Privacy protection is also a priority; sectoral authorities must collaborate with privacy regulators to ensure data minimization throughout AI development.
Concerns regarding intellectual property rights have emerged, particularly following a landmark court ruling in June 2025, which held that utilizing web-crawling technology for database services could result in criminal liability. This raises questions about the legality of acquiring training data from the internet.
Education and Workforce Development
To enhance digital literacy, the government is committed to promoting AI and AI ethics education across various sectors. This includes fostering collaboration among public, private, and academic entities, facilitating talent exchanges, and supporting infrastructure development.
The government also recognizes the need to protect labor rights in the face of AI advancements, pledging to address skill gaps and provide support for individuals displaced by AI technologies.
Review and Future Directions
The AI Basic Act requires the government to review and amend existing laws within two years if they are found inconsistent with the act. This will pave the way for further regulatory developments in the field of AI.
With the AI Basic Act now in effect, Taiwan demonstrates a strong commitment to advancing AI development while upholding fundamental principles. The next two years will be pivotal for Taiwan’s legal and technological landscape in AI.
