Taiwan’s AI Basic Act clears legislature

　The Ministry of Digital Affairs (“MODA”) issued a press release indicating that the Legislative Yuan of Taiwan approved the bill of the Artificial Intelligence Basic Act on third reading on December 23, 2025. This Act is enacted to promote human-centered AI research and development and AI industry growth, establish a safe environment for AI application, and fulfill digital equality and secure people’s fundamental rights.  In addition, this Act aims to ensure technological application in line with social ethics, uphold national cultural values, enhance international competitiveness, so as to lay down legal foundation for AI development and governance.  

1.  The Executive Yuan has undertaken to formulate and promote the Artificial Intelligence Basic Act since 2024.  

　In response to the recent boom in the development of AI technologies, the National Science and Technology Council (NSTC”) has set out to draw up a draft of Artificial Intelligence Basic Act (hereinafter the “Act”) since 2024, which involved multiple rounds of consultations with the industry, the government, and the academia and also expert meetings.  The Executive Yuan also convened inter-ministerial coordination meetings to deliberate on the provisions in order to build the consensus of all sectors.  As a result, the draft AI Basic Act was announced for public comment on July 15, 2024.  In 2025, MODA took over the responsibility to promote the legislation of the Act, while simultaneously formulating an “Artificial Intelligence Risk Classification Framework”.  

　During this period, several legislators had turned their attention to this Act.  Beginning in April 2025, the Legislative Yuan convened a series of public hearings and committee review meetings.  In addition to participation in these deliberations, MODA had actively engaged in consultations with legislators for their proposed amendments.  Through the joint efforts with all parties involved, the Act was progressively refined and completed.  

2.  The Act is to lay down AI governance principles and to balance development and security.  

　The Act affirms seven core principles to guide the government’s promotion of the research, development, and application of AI, which are sustained development and welfare, human autonomy, privacy protection and data governance, cybersecurity and safety, transparency and explainability, fairness and non-discrimination, and accountability.  Moreover, the implementation process will take into account both social equality and environmental sustainability, and provide appropriate education and training to narrow digital divide.  In the meantime, cybersecurity protection measures will be established to ensure system stability and security and appropriate information disclosure or labeling shall be applied to the outputs generated by AI.  

3.  The Act is to establish AI innovation ecosystem on a human-centered basis.

　The key policy priorities of the Act include setting aside ample funds for AI, introducing incentives, subsidies, and preferential measures for AI industry, providing an innovation-friendly environment for experimentation, promoting talent exchange and infrastructure building, and establishing a data governance mechanism, in order to create an innovative and friendly ecosystem for Taiwan’s AI industry.  

　Following the enactment of the Act, the government will continue its role in inter-ministerial coordination and guiding Taiwan in leveraging its semiconductor advantages toward integrated hardware-software development while fully promoting AI industries and applications rooted in human rights and digital equity.  (Released 2025.12.24)
/CCS