Taiwan's AI Act: What it Means for APAC

What's happening?

The National Science and Technology Council (NSTC) first put this draft out there in July 2024, with an update from Taiwan's Executive Yuan in August 2025. What's truly impressive is how it manages to encourage exciting AI innovation whilst steadfastly protecting human rights and the public interest. It's a tricky balance, but Taiwan seems to be finding its stride.

What's in the Draft? The Core Principles

When the "Draft Basic Act on Artificial Intelligence" was first opened for public discussion, the government made it clear they weren't going for a heavy-handed, single-regulator approach. Instead, they've opted for a cooperative model, with the Ministry of Digital Affairs (MoDA) at the helm, coordinating across various agencies. MoDA will be responsible for developing further rules and frameworks, especially for areas where AI might pose risks to public safety, order, or rights.

An official summary sums up the act's purpose rather nicely:

"[balancing] social equity and environmental sustainability while reducing the digital divide," and to uphold "human autonomy, personal rights, and fundamental freedoms, while allowing for human supervision" in AI systems.

This isn't just corporate speak; it lays out some really important foundational principles:

• Sustainability: AI should actively support social fairness and environmental goals, not detract from them.
• Human-Centric Design: Our values and human oversight are paramount. AI should serve us, not the other way around.
• Privacy and Data Governance: There's a strong emphasis on minimising data collection, but also on openness for non-sensitive data.
• Safety: AI systems need to be robust and resilient against potential threats.
• Transparency and Explainability: Users should always understand how AI systems work and the potential risks involved. Outputs need to be labelled or disclosed.

Interestingly, this Act gives academic and industrial research and development a bit of breathing room. Pre-market R&D is exempt from application-level accountability, which means it won't stifle innovation. The strict oversight kicks in when AI is actually applied and deployed, which makes a lot of sense.

Why This Matters for Businesses in APAC

Clarity in Regulation

For companies working in or with Taiwan, this draft brings a welcome dose of regulatory clarity. According to the NSTC, this framework "signals that a clearer governance path is emerging. That means lower friction for data partnerships, compliance, [and] innovation." It's about creating a unified approach, as a legal analysis from Lee & Li points out, ensuring "all sectors and administrations share the same values for AI, to support national development" rather than a confusing patchwork of rules. This clarity is crucial for the ongoing growth of the region's AI market, as seen in the recent AI Boom Fuels Asian Market Surge.

Ethics and Trust

The draft's strong focus on transparency, fairness, and human oversight is particularly relevant for media agencies and marketers who use AI to engage with consumers. Taiwan's approach encourages businesses to build ethics and explainability into their products right from the start. The message is clear: "AI systems must respect human values and rights — people should remain in control of AI decisions that affect them". This isn't just a suggestion; it's a core tenet. This focus on ethical AI aligns with broader discussions on ProSocial AI and the need for empathy and trust in the world of AI.

Regional and Global Influence

Taiwan's status as a high-tech, export-driven economy means its AI regulations will ripple through regional supply chains and undoubtedly influence other regulatory trends across APAC. This draft hasn't just popped out of nowhere; it explicitly draws on international best practices, including the EU AI Act, but it's tailored to fit Taiwan's own context. K&L Gates highlighted this, noting that the Bill also "commits to...establishing an AI risk classification framework that interfaces with the international community".

As John Chou, a lead counsel at a major Taipei law firm, observed:

"This draft puts Taiwan firmly on the global stage of AI governance — not as a follower, but as a regional innovator, showcasing that ethical AI is not just a Western mandate".

Business Opportunities

This new regulatory landscape also presents some fantastic business opportunities. As a recent strategic report put it: "For media and advertising trading functions, aligning your offer with ‘trusted AI’ messaging (compliance, ethics, transparency) could become a true differentiator". Taiwan could well become a testing ground or a regulatory hub for wider AI deployment across APAC, offering a chance to lead with ethical and compliant AI solutions. This is particularly relevant as APAC AI in 2026 is expected to see significant growth and evolution.

Watching Taiwan's Pivot. With the draft Basic Act, Taiwan joins the global club of jurisdictions codifying how AI must behave. For APAC marketers: it’s not just about the tech. It’s about the framework that lets you deploy it with confidence.

In Conclusion

Taiwan's draft Basic Act on Artificial Intelligence is really quite a bold and adaptable model for AI governance. It cleverly blends international standards with Taiwan's unique local priorities. As one expert succinctly summarised, "How the draft evolves in the coming months will be critical in shaping Taiwan’s role in the global AI ecosystem: one that balances technological leadership with a commitment to ethical, transparent, and forward-thinking governance".

For innovators, marketers, and media operators across APAC, this is far more than just legislative tidiness; it's a significant strategic signal and an exciting invitation for future growth.