At the end of last year, the Legislative Yuan passed the third reading of the "Artificial Intelligence (AI) Basic Law." This legislation positions AI development as a national policy, emphasizing the state's role in promoting AI and the principles that must be followed. It specifically focuses on mitigating risks related to potential damages to human life, body, liberty, and property, while preventing discrimination and disinformation.

Seven Core Principles

Article 3 of the AI Basic Law reveals seven fundamental principles:

1. Sustainable Development and Human Well-being
2. Human Autonomy
3. Privacy Protection and Data Governance
4. Cyber Security and System Safety
5. Transparency and Explainability
6. Fairness and Non-discrimination
7. Accountability

The National Science and Technology Council (NSTC) serves as the central competent authority. Tsai Miao-tzu, Director of the Department of Foresight and Innovation Policies at the NSTC, stated that these principles will serve as common standards for all government ministries when promoting policies, technologies, and industries.

Division of Responsibility

The Ministry of Digital Affairs (MODA) is responsible for establishing a risk classification framework and providing assessment and verification tools. Meanwhile, the Executive Yuan will coordinate with various competent authorities to adjust regulations within their specific sectors.

From Ethics to Legal Constraints

Chang Li-ching, Chair Professor at Shih Chien University’s College of Law and CEO of the **International Artificial Intelligence and Law Research Foundation**, stated that Taiwan's AI Basic Law elevates previous ethical guidelines into legally binding fundamental principles.

"This provides a value basis and legal positioning for future laws and policy formulation involving AI, preventing AI development and application from infringing on human rights, disrupting social order, or endangering national security," Chang said.

However, as a "Basic Law," it does not contain penal provisions. Consequently, many regulations will need to be mobilized in the future to readjust norms related to the AI field.

Using the autonomous vehicle industry as an example, Chang explained that the AI Basic Law will not affect the AV industry directly. Instead, it will influence the transportation industry through traffic regulations that are amended to align with the legislative intent of the AI Basic Law.

Impact on Regulated Industries

Lee Yu-hsun, a partner lawyer at PwC Legal, pointed out that the industries most affected by the AI Basic Law are primarily those requiring high levels of regulation—such as the financial and medical sectors—as well as industries utilizing significant amounts of sensitive data, those where AI calculation results are used directly for customer service, and sectors with high ethical expectations, like academia.

Lee noted that while the introduction of management and supervision mechanisms via the AI Basic Law may lengthen AI development cycles and increase costs, it ensures rationality and social acceptability.

Clarifying Risk Boundaries
Chang Li-ching believes the key function of the AI Basic Law is to provide a standardized national language for risk governance, allowing enterprises to assess risks prior to R&D, deployment, and commercialization.

"From a medium-to-long-term perspective, the AI Basic Law acts as an accelerator," Chang argued. "What truly drags down AI development is often 'legal uncertainty'—not knowing where the boundaries of risk lie."

Call for Strategic Committee and Infrastructure Support
Lee Yu-hsun believes the NSTC should accelerate the establishment of the "National AI Strategy Special Committee" and publish its organizational regulations as soon as possible to clarify the committee's duties, composition, operation, and the validity of its resolutions.

Furthermore, Lee suggested that the Ministry of Economic Affairs and local governments formulate clearer policies with incentives to assist in data center site selection, ensure stable power and green energy supplies, and simplify administrative processes. By leveraging the AI Basic Law, the government can improve the investment environment for the AI industry and coordinate cross-ministry resources to provide solutions.