Taiwan Artificial Intelligence Basic Act: A Statutory Framework for Human-Centerd AI Governance

Introduction In early 2025, while the world watched Silicon Valley’s AI arms race intensify, Taiwan took a different path. On 8 January 2026, President Lai Ching-te signed Presidential Order Hua-Zong-Yi-Yi-Zi №11400001461, promulgating the Artificial Intelligence Basic Act, Taiwan’s first comprehensive legal framework for AI governance. The Act came into force on 14 January 2026, marking Taiwan’s commitment to shaping AI development through principles-first, human-centred governance rather than reactive regulation.

What makes Taiwan’s approach distinctive? Unlike the EU’s AI Act with its hundreds of pages of prescriptive rules, Taiwan’s Act serves as a Basic Act, a constitutional framework for AI rather than a rulebook.

Who’s in Charge? Governance Structure Article 2 gives responsibility to the National Science and Technology Council (NSTC) at the central government level, with local governments handling day-to-day enforcement. But AI touches everything, Healthcare diagnostics, financial credit scoring, hiring algorithms, autonomous vehicles.

This distributed model avoids bottlenecks and ensures domain expertise shapes the rules.

What Exactly Is AI? The Statutory Definition Article 3 provides Taiwan’s statutory definition, aligned with international standards: The term artificial intelligence refers to a system with the capacity for autonomous operation, which, through input or sensing and via machine learning and algorithms, can generate outputs such as predictions, content, recommendations, or decisions that influence physical or virtual environments. Seven Guiding Principles: The North Star Article 4 establishes seven core principles that government must observe when promoting AI.

1. Sustainable Development and Well-Being: Balance social fairness with environmental sustainability.
2. Human Autonomy :Support human decision-making authority.
3. Privacy Protection and Data Governance :Protect personal data privacy.
4. Cybersecurity and Safety : Design systems with security in mind.
5. Transparency and Explainability : AI outputs must be appropriately disclosed.
6. Fairness and Non-Discrimination : Avoid algorithmic bias.
7. Accountability : When things go wrong, someone must be responsible.

What’s Prohibited? High-Risk Applications Article 5 draws red lines. The government must prevent AI applications from: Building the Ecosystem: Education, Budget, Innovation

Article 7 mandates continuous AI and ethics education across schools, industries, and public agencies, cultivating digital literacy.

Article 10 specifies support mechanisms: subsidies, investments, incentives, tax and financial measures.

Article 11 encourages experimentation through innovation sandboxes, controlled environments where companies can test AI with regulatory flexibility.

Building the Ecosystem: Education, Budget, Innovation Article 7 mandates continuous AI and ethics education across schools, industries, and public agencies, cultivating digital literacy.

Article 10 specifies support mechanisms: subsidies, investments, incentives, tax and financial measures.

Article 11 encourages experimentation through innovation sandboxes, controlled environments where companies can test AI with regulatory flexibility.

Data Governance: Opening, Sharing, Protecting Article 13 requires establishing mechanisms for data opening, sharing, and reuse to enhance data usability.

Article 14 drills into personal data. Sector authorities must avoid unnecessary data collection and promote personal data protection by design and by default.

The Framework That Matters: Risk Classification Article 16 is arguably the Act’s most consequential provision. MODA shall, referencing international standards like NIST, promote an AI risk classification framework interoperable with international frameworks.

High-risk AI gets more scrutiny, testing, documentation. Lower-risk systems face lighter requirements.

Conclusion Taiwan’s Artificial Intelligence Basic Act represents principles-first legislation that balances enabling innovation with protecting fundamental rights.

For organizations operating across Asia-Pacific, the Act previews how other jurisdictions may approach AI regulation: principle-anchored, risk-based, sector-specific, and implementation-flexible. Read the full article here: Taiwan Artificial Intelligence Basic Act: A Statutory Framework for Human-Centerd AI Governance