President Ching-te Lai has pledged to transform Taiwan into an "AI Island," fueling interest in whether Taiwan's inaugural AI Basic Act can win approval from the Executive Yuan and be submitted to the Legislative Yuan for review by the end of 2024.
For clarity, the Executive Yuan is referred to as the executive branch, the Legislative Yuan as Congress, the National Science and Technology Council as NSTC, and the Ministry of Digital Affairs as MODA. Party abbreviations are KMT (Kuomintang), DPP (Democratic Progressive Party), and TPP (Taiwan People's Party).
Three to four versions of the AI Basic Act are currently under review in Congress, awaiting alignment with the executive branch's draft. However, significant differences between versions and the limited legislative timeframe due to budget discussions make it unlikely that the Act will pass by Lunar New Year in early 2025.
NSTC Minister Cheng-wen Wu initially announced plans to submit the AI Basic Act draft to the executive branch by October's end, with the goal of reaching Congress for review soon after. However, the draft remains in legal processing, delaying its submission. The NSTC has opted to wait for international regulatory standards, aiming to align Taiwan's framework with global guidelines.
During the draft's public review period, several provisions encountered opposition from civil organizations. The NSTC must also assess potential conflicts with existing regulations and finalize which body—the NSTC or the MODA—will assume oversight. Clear and precise language in the draft is crucial to avoid future legal ambiguities, contributing to delays in advancing the AI Basic Act beyond its initial timeline.
The public review period of the draft sparked opposition from civil groups, and the NSTC must also assess regulatory conflicts and determine whether the NSTC or MODA will oversee implementation. The need for precise language to avoid legal ambiguities has further delayed progress on the AI Basic Act.
Current AI Basic Act versions
There are four draft versions currently in play—one each from KMT, DPP, a joint KMT-TPP version, and the NSTC draft from the executive branch.
Drafts of the AI Basic Act from lawmakers across major parties—such as KMT's S.B. Lai, T.H. Wu, and DPP's Y.J. Lin—are currently under review. The expected submission of a fourth draft from the NSTC is likely to prompt extensive debate and revisions before any final version is approved.
The draft proposed by KMT legislators S.B.Lai, H.W. Wang, Y.M. Wang, and C.C. Cheng mandates transparency, data minimization, and purpose specificity in personal data handling by companies, ensuring individuals' rights to access and control their data.
The joint KMT-TPP draft, led by T.H. Wu, M.K. Hung, J.C. Ko, Y.C. Hsu, and C.H. Hsu, designates the MODA as the central regulatory authority, with municipal and county governments handling local oversight. Should the executive branch's NSTC draft propose a different arrangement, it will likely prompt substantial debate in Congress's Education and Culture Committee.
The joint KMT-TPP draft also advocates for mechanisms to monitor AI safety and report serious incidents. Citing Article 3 of the "Basic Environmental Act," this draft calls for environmental protection to take priority if AI research or applications present risks. However, effective implementation of this principle has proven challenging for the government.
The version from DPP legislators Y.J. Lin, Ngalim Tiunn, K.T. Chen, Y.Y. Chiu, and J.L. Lai draws primarily on Singapore's and the UK's "Generative AI Governance Framework" drafts, as well as South Korea's "Basic Law on Intelligent Informatization."
The DPP draft aligns more closely with the executive branch's NSTC proposal, making integration relatively straightforward due to fewer differences.
The NSTC draft is pending final approval but has outlined seven core principles—sustainable development, human autonomy, privacy protection, cybersecurity, transparency, interpretability, fairness, and accountability—following extensive consultation with industry leaders, academics, and government departments.
The framework seeks to promote innovation while balancing human rights and risk management. After a 60-day public notice period, it will undergo review by the executive branch's digital policy coordination committee and require final approval before its official release.
