Taiwan NSTC rolls out draft proposal for Artificial intelligence Basic Act

　On July 15, 2024, the National Science and Technology Council of Taiwan (“NSTC”) announced and proposed a draft of the “Artificial Intelligence Basic Act” (hereinafter the “Draft Act”).  The Draft Act consists of 18 articles, setting forth that the government should actively promote AI research and development, offer rewards or tax breaks.  It also requires that the government should enhance the trustworthiness of AI applications in terms of AI risks classification through the implementation of mechanisms of AI output labeling, information disclosure, and accountability, and also to establish the conditions of AI application as well as provisions regulating remedies, indemnity or insurance.  In addition, the Draft Act obligates all relevant authorities or agencies to set up a mechanism for the responsibility of AI application, including regulations for foreign AI product’s application.  Also to address the concerns over job displacement caused by the rise of AI, the Draft Act mandates that the government provide employment assistance programs for affected workers.  

　The Draft Act is formulated on such seven fundamental principles as sustainable development, human autonomy, privacy protection, information security and safety, transparency and explainability, fairness and non-discrimination, and accountability.  Also, the Draft Act sets out the following four priority objectives as the guiding principles to be adopted by the relevant authorities of Taiwan for AI application, and the four objectives are innovation and cooperation, talent cultivation, risk management and application responsibility, rights protection and data utilization, laws/regulations adaptation and business examination, etc..  (Released 2024.07.16)  
/CCS