The development of AI is a major policy of the Taiwan government. In 2018, the government proposed the "Smart Taiwan Plan" with the goal of achieving an innovative, sustainable, and inclusive smartnation by 2030. As AI plays an important role in the smart nation, major developed countries around the world have all proposed corresponding policies and laws related to AI, such as the US "Guidance for Regulation of Artificial Intelligence Applications," the EU's "Artificial Intelligence Act," Germany's "Federal Government’s Artificial Intelligence Strategy," Japan's " Governance Guidelines for Implementation of AI Principles," and Korea's " Framework Act on Intelligent Informatization." In 2018, the Executive Yuan rolled out the " AI Taiwan Action Plan" to promote the cultivation of AI talents to facilitate the research and development, and link smart manufacturing, healthcare and other industries aiming to propell Taiwan towards the leading smart nations.
 
However, as the development of AI rapidly progresses and its applications continue to extend, its negative effects and risks cannot be ignored. In order to shape a trustworthy environment for the development of AI and realize its diverse utilization, our foundation believes that there is a legislative necessity to promote the Artificial Intelligence Basic Act.

Starting in August 2022, under the active planning of Chairman Hsu Ming-hsien and the leadership of CEO Chang Li-ching, along with several part-time research fellows, our organization has gone through numerous joint discussions, as well as several rounds of review and revision, to propose the "Draft AI Basic Law (Discussion Draft)" in the hope of contributing to the development of AI laws in Taiwan.

 
The main features of the proposal of AI Basic Act are as follows:
  1. Legalization of AI ethical principles: it stipulates that the research and use of AI should be human-oriented, with the goals of benefiting the people and promoting sustainable development, and adhering to basic principles such as autonomy, confidentiality, security, inclusion, and transparency.
  2. Industry Development Strategy Led by National Policy: As AI is a key technology for national development, it should be led by national policies and development plans. For example, the government should implement major policies for AI development such as talent cultivation, establishment of infrastructure, and promotion of industry-academia cooperation through cross-disciplinary or international collaboration. Continuous investment of stable and sufficient resources should be ensured, with budget funds meeting the required needs, and combined with financial and tax incentives to actively assist and guide the AI industry chain.
  3. Emphasizing social fairness and disadvantaged groups protection: Considering the potential impact of AI on the labor market and the resulting unequal distribution of social resources, the government should implement protection for groups in need of assistance, labor rights, and fair trading order, and establish necessary remedy, compensation, and insurance systems.
  4. Emphasis on Privacy and Personal Data Protection: The development of AI is highly relevant to big data collection. In order to safeguard the privacy rights of the people, the government should establish necessary protection and supervision mechanisms for the data collection, processing, and utilization required for AI development and application.
  5. Establish a comprehensive artificial intelligence regulatory sandbox: the government should set up an environment for innovative experimentation, provide a safe field and experimental space for related research and development so as to properly evaluate the potential benefits and risks of innovative technologies, and, if necessary, lift restrictions of relevant regulations.
  6. Regulating AI products and services based on their level of risk: Referring to the spirit of the EU 2021 "Artificial Intelligence Act" draft and the US " The Algorithmic Accountability Act of 2022 " draft, governments are required to establish risk assessment and regulatory mechanisms for the development and use of AI, and regulate appropriately based on the level of risk to balance the possible hazard of new technologies.
 Chairman Tsung-Hsien Hsu will delivery an introduction speech, and the presentation will be hosted by Prof. Tian-Guei Gan who is also our consultant of foundation. The presentation will be conducted both in-person and online with live streaming. We hope that the release of this proposal of “Artificial Intelligence Basic Act” will serve as reference for further research and study in various fields, and become an important cornerstone for the promotion of AI legal system in Taiwan.