Taiwan moves toward becoming an AI Island as Executive Yuan greenlights its Artificial Intelligence Basic Act

　In order to build up a sound environment for developing and applying artificial intelligence and to foster Taiwan into an AI island, the Executive Yuan of Taiwan approved the draft Artificial Intelligence Basic Act on August 28, 2025 (hereinafter the “draft Act”) and submitted the draft Act to the Legislative Yuan for deliberation.  

　The minister of the Executive Yuan indicated that for the purpose of building up a sound environment conducive to AI development and application, the Ministry of Digital Affairs carries on the task of drafting the Artificial Intelligence Basic Act initiated by the National Science and Technology Council.  The legislation aims to establish the fundamental principles for AI development, application, and governance, with a focus on urging technological innovation and keeping pace with the international standards, while also focusing intellectual property rights and personal data protection.  The Act serves to chart the course for national development, position Taiwan as an “AI Island” and elevate Taiwan to a key player in the global advancement of artificial intelligence.  

　The minister stated that following the submission of the draft Act to the Legislative Yuan for review, the Ministry of Digital Affairs should, based on the legislative framework and principles of basic act, actively communicate with all political parties and various sectors of society to seek support, so as to complete the legislative process as soon as possible.  The key points of the draft Act are as follows.  

(1)  Legislative purpose; (Article 1 of the draft Act) 

(2)  Definition of artificial intelligence; (Article 2) 

(3)  Fundamental and guiding principles for AI research, development, and application; (Article 3) 

(4)  The government should promote AI research and development, application, and infrastructure; (Article 4) 

(5)  Competent authorities may establish AI innovation-friendly environments for AI-based products or services; (Article 5)

(6)  The government should promote AI innovation through public-private partnerships and should also advance international AI-related collaboration; (Article 6)

(7)  The government should keep promoting AI education; (Article 7)  

(8)  The government should prevent unlawful conduct arising from AI application, and relevant government agencies should provide or recommend tools or methods for evaluation and verification; (Article 8)

(9)  The Ministry of Digital Affairs should create an AI risk classification framework aligned with international standards, and competent authorities should, as needed, use this framework to establish risk-based tiered management regulations; (Article 9) 

(10)  The government may, through laws or guidelines, establish standards, verification, traceability, or accountability mechanisms to enhance the verifiability and human controllability of AI-driven decision-making; (Article 10)

(11)  The government should clarify liability attribution and conditions for accountability in high-risk AI applications and also establish remedy, compensation, or insurance mechanism; (Article 11) 

(12) The government should protect labor rights and must provide reemployment assistance to those who become unemployed due to AI; (Article 12)

(13)  The government should protect personal data during AI development and application; (Article 13)

(14)  The government is also required to enhance the availability, quality, and quantity of data used in AI to avail AI training and outputs that uphold the country’s cultural diversity and protect IP rights; (Article 14); 

(15)  Guidelines for AI use in government affairs; (Article 15) 

(16)  After the enforcement of this Act, the government should review and adjust the competent authorities’ duties, functions, relevant regulations and issue guidelines according to this Act.  The central competent authorities should consult with the central digital authority to interpret and specify scope of applications with respect to those matters not addressed in the existing laws and regulations before amendment. (Article 16)  (Released 2025.08.28)  
 /CCS