[Taiwan] Basic Law on AI now in effect

In Taiwan, the new Basic Law on AI has come into effect. The draft bill was approved by the Executive Yuan in August 2025 and formally passed by the Legislature in December, reflecting the government’s push to keep pace with rapid AI growth while managing its risks.

The law was designed to encourage innovation without losing sight of people’s rights and interests. It establishes seven guiding principles for AI development and use, including sustainability, respect for human autonomy, privacy and data protection, safety, transparency, fairness and accountability. These principles aim to create a framework which supports responsible AI adoption across society.

A key focus of the legislation is collaboration and innovation. The government plans to support AI research and infrastructure through grants, investment incentives and tax measures, while also encouraging international cooperation and cross-border talent exchange. Improved data sharing and openness are expected to make AI tools more effective and accessible.

Talent development is another priority. The law promotes AI education across schools, workplaces and public institutions, to improve overall AI literacy and prepare the workforce for change.

To help manage potential downsides, the legislation introduces a risk-based approach aligned with international standards. High-risk AI applications will be subject to stricter oversight, including clearer rules on accountability, compensation and insurance. New assessment and verification mechanisms are also planned to strengthen human oversight and legal compliance.

Importantly for employers and workers, the law addresses the impact of AI on jobs. It includes employment counselling and support for workers displaced by automation, alongside strong safeguards for personal data and intellectual property.

The new AI law positions Taiwan as a forward-looking player in the global AI landscape, balancing innovation with worker protection, data governance and social responsibility.

Source: Executive Yuan

In Taiwan, the new Basic Law on AI has come into effect. The draft bill was approved by the Executive Yuan in August 2025 and formally passed by the Legislature in December, reflecting the government’s push to keep pace with rapid AI growth while managing its risks.

The law was designed to encourage innovation without losing sight of people’s rights and interests. It establishes seven guiding principles for AI development and use, including sustainability, respect for human autonomy, privacy and data protection, safety, transparency, fairness and accountability. These principles aim to create a framework which supports responsible AI adoption across society.

A key focus of the legislation is collaboration and innovation. The government plans to support AI research and infrastructure through grants, investment incentives and tax measures, while also encouraging international cooperation and cross-border talent exchange. Improved data sharing and openness are expected to make AI tools more effective and accessible.

Talent development is another priority. The law promotes AI education across schools, workplaces and public institutions, to improve overall AI literacy and prepare the workforce for change.

To help manage potential downsides, the legislation introduces a risk-based approach aligned with international standards. High-risk AI applications will be subject to stricter oversight, including clearer rules on accountability, compensation and insurance. New assessment and verification mechanisms are also planned to strengthen human oversight and legal compliance.

Importantly for employers and workers, the law addresses the impact of AI on jobs. It includes employment counselling and support for workers displaced by automation, alongside strong safeguards for personal data and intellectual property.

The new AI law positions Taiwan as a forward-looking player in the global AI landscape, balancing innovation with worker protection, data governance and social responsibility.

Source: Executive Yuan