Taiwan’s Legislative Yuan has approved a new law establishing a national framework for governing AI, marking a major step in shaping how the technology will be developed and used across the island.

The Artificial Intelligence Basic Act sets out guiding principles for AI governance and formally designates the National Science and Technology Council (NSTC) as the central authority responsible for AI policy and coordination. The legislation requires the government to actively promote AI research and applications while prioritizing social welfare, digital equity, innovation, and national competitiveness.

Under the law, AI development in Taiwan must follow seven core principles: sustainability and well-being, human autonomy, privacy and data governance, cybersecurity and safety, transparency, and explainability, fairness and non-discrimination, and accountability. It also introduces clear red lines, stating that AI systems must not endanger lives, freedoms, or property, undermine social order or national security, harm the environment, or involve bias, discrimination, false advertising, misinformation, or fabrication.

While the act outlines high-level principles rather than detailed enforcement mechanisms, it assigns oversight responsibility to the NSTC. That provision was adopted with the backing of lawmakers from the Chinese Nationalist Party (KMT) and the Taiwan People’s Party, despite objections from the Democratic Progressive Party, which argued that basic laws traditionally do not specify a governing authority.

The legislation also mandates the Executive Yuan to establish a national AI strategy committee chaired by the premier. The committee will include representatives from academia, industry, and central and local government and will be tasked with shaping national AI development guidelines. It must convene at least once a year, with administrative support provided by the NSTC.

Beyond governance structures, the act calls on the government to allocate funding — within fiscal limits — for AI research, applications, and infrastructure. It also emphasizes data openness alongside strong personal data protection, risk-based AI management aligned with international standards, and safeguards for labor rights, including retraining and employment support for workers displaced by AI.