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Legislative Yuan Passes Artificial Intelligence Fundamental Act in Third Reading, Laying Foundation for AI Innovation, Security Governance in Taiwan

The Legislative Yuan passed the Artificial Intelligence Fundamental Act on December 23, 2025, aiming to promote human-centered artificial intelligence (AI) research and development and the growth of the AI industry, build a safe AI application environment, implement digital equality and protect the fundamental rights of the people. This act will ensure that the application of technology conforms to social ethics, safeguards national cultural values, enhances international competitiveness, and lay the legal and regulatory foundation.

The Executive Yuan began planning for the enactment of the Artificial Intelligence Fundamental Act in 2024.

In response to the rapid development of AI technology in recent years, the National Science and Technology Council (NSTC) first planned the drafting of the act in 2024. It consulted with various sectors, including industry, government, and academia, and held expert meetings. Furthermore, the Executive Yuan also convened inter-ministerial consultation meeting to discuss the legal provisions and build consensus. The draft was announced on July 15, 2024. Following which, in 2025, the Ministry of Digital Affairs (MODA) took over the legislative process and simultaneously studied for the establishment of the AI Risk Classification Framework.

During this period, several legislators of the Legislative Yuan also paid attention to this act, and since April 2025, several public hearings and review meetings regarding this act had been held. In addition to participating in the discussions, MODA took the initiative to visit and communicate with the legislators regarding their proposals. With the joint efforts of all parties, this act gradually became more comprehensive.

Establishing AI Governance Principles to Achieve a Balance between Development and Security

This act establishes seven principles for the government to promote the research, development and application of AI: sustainable development and well-being, human autonomy, privacy protection and data governance, cybersecurity and safety, transparency and explainability, fairness and non-discrimination, and accountability. The implementation process will take into account both social equity and environmental sustainability, and provide appropriate education and training to reduce digital divide. At the same time, cybersecurity protection measures will be established to ensure system robustness and security, and make appropriate information disclosure or labeling of AI outputs.

Building an AI Innovation Ecosystem with a Human-Centered Approach

The Artificial Intelligence Fundamental Act promotes specific priorities, including allocating a generous AI budget, implementing AI industry subsidies and preferential measures, providing a friendly environment for innovation experimentation, promoting talent exchange and infrastructure building, and establishing a data governance mechanism, in order to create an innovative and friendly ecosystem for Taiwan's AI industry.

Following the enactment of the Artificial Intelligence Fundamental Act, the government will continue to act as an inter-ministerial coordination platform in guiding Taiwan to go beyond its semiconductor advantage to the integration of hardware and software. The government will spare no effort in promoting the AI industry and applications that are grounded in the implementation of human rights protection and digital equality.

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