Taiwan’s legislature has approved sweeping new legislation establishing the island’s first comprehensive legal framework for artificial intelligence governance, setting out principles for AI development while mandating safeguards for human rights, public safety, and social welfare, according to reporting by Taiwan News.

The Legislative Yuan on Tuesday passed the Artificial Intelligence Basic Act in its third reading, formally designating the National Science and Technology Council (NSTC) as the central competent authority responsible for coordinating national AI policy. The law defines artificial intelligence as systems capable of autonomous operation that use machine learning and algorithms to generate outputs—such as predictions, recommendations, content, or decisions—that affect physical or virtual environments.

Under the act, government efforts to promote AI research and applications must balance innovation and national competitiveness with social welfare and digital equity. The legislation enshrines seven guiding principles: sustainability and well-being, human autonomy, privacy and data governance, cybersecurity and safety, transparency and explainability, fairness and non-discrimination, and accountability.

To prevent harmful uses, the law requires authorities to avoid AI applications that infringe on life, bodily integrity, freedom, or property, or that threaten social order, national security, or the environment. It explicitly bars AI uses involving bias, discrimination, misinformation, fabrication, or false advertising. High-risk AI products must be clearly labeled with appropriate warnings, and the government is required to prioritize the protection of children and adolescents.

The act mandates the creation of a national AI strategy committee convened by the premier and composed of scholars, industry representatives, government officials, and local leaders. The committee must meet at least annually, with administrative support provided by the NSTC.

The government is also tasked with funding AI research, infrastructure, and pilot programs, while strengthening legal and regulatory frameworks for AI deployment. Personal data use must be minimized, with data protection by design and by default emphasized throughout AI development.

According to Taiwan News, the Ministry of Digital Affairs will develop an AI risk classification framework aligned with international standards, establish sector-specific guidelines, and clarify liability and compensation mechanisms for high-risk AI systems. The law also requires measures to protect workers, address AI-driven job displacement, and support workforce transitions as AI adoption accelerates.

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