September 2024
Taiwan's National Science and Technology Council Announces Draft "Artificial Intelligence Basic Act": A Fragmented AI Basic Act Drawing from International Standards
September 2024
Jane Tsai, Albert Yen, David Hung
To address the social and economic effects of the rapid development of artificial intelligence technology in recent years, as well as the potential risks and impacts it may have on individuals and society, the National Science and Technology Council ("the Council") announced the draft Artificial Intelligence Basic Act ("the Draft") on July 15, 2024. Previously, on October 3, 2023, the Council issued the Reference Guidelines for the Use of Generative AI by the Administrative Yuan and Affiliated Agencies to provide Guidance for Administrative Agencies in Utilizing Generative Artificial Intelligence. Similarly, Taiwan Financial Supervisory Commission released Guidelines for the Use of Artificial Intelligence (AI) in the Financial Industry on June 20, 2024, to serve as a reference for financial institutions adopting AI. However, these earlier guidelines were limited to specific agencies or units, resulting in a scope that was too narrow. This limitation led to calls within Taiwan for the establishment of a comprehensive AI basic act[1], similar to those enacted by the EU[2] and Canada[3]. The Draft represents Taiwan's first proposed AI act with the status of a basic law, thereby attracting significant attention. The main points of the Draft are summarized in detail below:
1. Reference to Five International Standards for Formulating Seven Principles to Promote Government AI R&D and Application
To establish a foundation for government agencies to promote AI R&D and its application within their respective jurisdictions, Article 3 of the Draft clearly states that the government should base its actions on the principle of balancing public interest with digital equity. Additionally, it should reference the Hiroshima Process Code of Conduct for Organizations Developing Advanced AI Systems, the OECD Recommendation on Artificial Intelligence published in 2019, the United States' Blueprint for an AI Bill of Rights from 2022, Singapore's Proposed Model AI Governance Framework for Generative AI draft from 2023, and the EU's Ethics Guidelines for Trustworthy AI from 2019. From these references, the government has derived seven guiding principles, including:
(1) Sustainable development and well-being;
(2) Human autonomy;
(3) Privacy and data governance;
(4) Security and safety;
(5) Transparency and explainability;
(6) Fairness and non-discrimination;
(7) Accountability
2. Article 10 of the Draft explicitly mandates that the Ministry of Digital Affairs reference international standards or regulations to promote an AI risk classification framework. For example, the EU Artificial Intelligence Act establishes a four-tier risk classification, including prohibited AI behaviors, to advance an AI risk classification framework that aligns with international standards.
3. Article 14 of the Draft explicitly mandates that personal data protection authorities assist competent authorities in preventing the unnecessary collection, processing, or use of personal data during AI R&D and its applications. It also references the U.S. Blueprint for an AI Bill of Rights from 2022 and the 2023 Executive Order on Safe, Secure, and Trustworthy Artificial Intelligence. In Taiwan, personal data protection authorities are responsible for helping competent authorities integrate data protection measures and mechanisms into their regulatory frameworks, in accordance with the principles of data protection by design and by default. This includes guidelines such as the Privacy Enhancing Technologies Application Guidelines issued by the Ministry of Digital Affairs.
4. Beyond the two specific provisions that mandate concrete actions from certain agencies, Articles 4 to 17 of the Draft outline numerous obligations for the government. For instance, Article 4 mandates that the government actively promote AI R&D, application, and infrastructure development. Article 9 requires the government to avoid AI applications that could harm citizens' lives, bodies, freedoms, property safety, social order, or the ecological environment, or that could result in conflicts of interest, bias, discrimination, false advertising, misinformation, or fraud, thereby violating relevant regulations. Article 13, Paragraph 2 stipulates that the government should provide employment counseling for individuals who become unemployed due to the utilization of AI, based on their work capabilities. While these provisions aim to clarify the government's responsibilities, the ambiguity surrounding accountability may lead to a situation where everyone is responsible, yet no one takes charge.
From the general and article-specific explanations of the Draft, it is evident that the Draft extensively references several international standards, such as the OECD Recommendation on Artificial Intelligence, the EU's Artificial Intelligence Act, and the U.S. Blueprint for an AI Bill of Rights. The goal is to achieve international alignment. However, this fragmented AI Basic Act of Taiwan, which selectively borrows elements from various sources, may serve as a superficial display but still has a long way to go before it can become a comprehensive guiding framework for Taiwan's AI development.
[1] Li-Ching Chang, Bo-Han Jou, Ching-Fu Lin, et al. (2023). The Necessity and Advocacy for the Formulation of Artificial Intelligence Basic Act in Taiwan, The Taiwan Law Review, Issue 340, pp. 79-101.
[2] The European Commission proposed the Artificial Intelligence Act in 2021, which was adopted by the European Parliament in 2024.
[3] Canada proposed the Artificial Intelligence and Data Act in 2022.
The contents of all materials (Content) available on the website belong to and remain with Lee, Tsai & Partners. All rights are reserved by Lee, Tsai & Partners, and the Content may not be reproduced, downloaded, disseminated, published, or transferred in any form or by any means, except with the prior permission of Lee, Tsai & Partners.
The Content is for informational purposes only and is not offered as legal or professional advice on any particular issue or case. The Content may not reflect the most current legal and regulatory developments. Lee, Tsai & Partners and the editors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The contributing authors' opinions do not represent the position of Lee, Tsai & Partners. If the reader has any suggestions or questions, please do not hesitate to contact Lee, Tsai & Partners.
Jane Tsai, Albert Yen, David Hung
To address the social and economic effects of the rapid development of artificial intelligence technology in recent years, as well as the potential risks and impacts it may have on individuals and society, the National Science and Technology Council ("the Council") announced the draft Artificial Intelligence Basic Act ("the Draft") on July 15, 2024. Previously, on October 3, 2023, the Council issued the Reference Guidelines for the Use of Generative AI by the Administrative Yuan and Affiliated Agencies to provide Guidance for Administrative Agencies in Utilizing Generative Artificial Intelligence. Similarly, Taiwan Financial Supervisory Commission released Guidelines for the Use of Artificial Intelligence (AI) in the Financial Industry on June 20, 2024, to serve as a reference for financial institutions adopting AI. However, these earlier guidelines were limited to specific agencies or units, resulting in a scope that was too narrow. This limitation led to calls within Taiwan for the establishment of a comprehensive AI basic act[1], similar to those enacted by the EU[2] and Canada[3]. The Draft represents Taiwan's first proposed AI act with the status of a basic law, thereby attracting significant attention. The main points of the Draft are summarized in detail below:
1. Reference to Five International Standards for Formulating Seven Principles to Promote Government AI R&D and Application
To establish a foundation for government agencies to promote AI R&D and its application within their respective jurisdictions, Article 3 of the Draft clearly states that the government should base its actions on the principle of balancing public interest with digital equity. Additionally, it should reference the Hiroshima Process Code of Conduct for Organizations Developing Advanced AI Systems, the OECD Recommendation on Artificial Intelligence published in 2019, the United States' Blueprint for an AI Bill of Rights from 2022, Singapore's Proposed Model AI Governance Framework for Generative AI draft from 2023, and the EU's Ethics Guidelines for Trustworthy AI from 2019. From these references, the government has derived seven guiding principles, including:
(1) Sustainable development and well-being;
(2) Human autonomy;
(3) Privacy and data governance;
(4) Security and safety;
(5) Transparency and explainability;
(6) Fairness and non-discrimination;
(7) Accountability
2. Article 10 of the Draft explicitly mandates that the Ministry of Digital Affairs reference international standards or regulations to promote an AI risk classification framework. For example, the EU Artificial Intelligence Act establishes a four-tier risk classification, including prohibited AI behaviors, to advance an AI risk classification framework that aligns with international standards.
3. Article 14 of the Draft explicitly mandates that personal data protection authorities assist competent authorities in preventing the unnecessary collection, processing, or use of personal data during AI R&D and its applications. It also references the U.S. Blueprint for an AI Bill of Rights from 2022 and the 2023 Executive Order on Safe, Secure, and Trustworthy Artificial Intelligence. In Taiwan, personal data protection authorities are responsible for helping competent authorities integrate data protection measures and mechanisms into their regulatory frameworks, in accordance with the principles of data protection by design and by default. This includes guidelines such as the Privacy Enhancing Technologies Application Guidelines issued by the Ministry of Digital Affairs.
4. Beyond the two specific provisions that mandate concrete actions from certain agencies, Articles 4 to 17 of the Draft outline numerous obligations for the government. For instance, Article 4 mandates that the government actively promote AI R&D, application, and infrastructure development. Article 9 requires the government to avoid AI applications that could harm citizens' lives, bodies, freedoms, property safety, social order, or the ecological environment, or that could result in conflicts of interest, bias, discrimination, false advertising, misinformation, or fraud, thereby violating relevant regulations. Article 13, Paragraph 2 stipulates that the government should provide employment counseling for individuals who become unemployed due to the utilization of AI, based on their work capabilities. While these provisions aim to clarify the government's responsibilities, the ambiguity surrounding accountability may lead to a situation where everyone is responsible, yet no one takes charge.
From the general and article-specific explanations of the Draft, it is evident that the Draft extensively references several international standards, such as the OECD Recommendation on Artificial Intelligence, the EU's Artificial Intelligence Act, and the U.S. Blueprint for an AI Bill of Rights. The goal is to achieve international alignment. However, this fragmented AI Basic Act of Taiwan, which selectively borrows elements from various sources, may serve as a superficial display but still has a long way to go before it can become a comprehensive guiding framework for Taiwan's AI development.
[1] Li-Ching Chang, Bo-Han Jou, Ching-Fu Lin, et al. (2023). The Necessity and Advocacy for the Formulation of Artificial Intelligence Basic Act in Taiwan, The Taiwan Law Review, Issue 340, pp. 79-101.
[2] The European Commission proposed the Artificial Intelligence Act in 2021, which was adopted by the European Parliament in 2024.
[3] Canada proposed the Artificial Intelligence and Data Act in 2022.
The contents of all materials (Content) available on the website belong to and remain with Lee, Tsai & Partners. All rights are reserved by Lee, Tsai & Partners, and the Content may not be reproduced, downloaded, disseminated, published, or transferred in any form or by any means, except with the prior permission of Lee, Tsai & Partners.
The Content is for informational purposes only and is not offered as legal or professional advice on any particular issue or case. The Content may not reflect the most current legal and regulatory developments. Lee, Tsai & Partners and the editors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The contributing authors' opinions do not represent the position of Lee, Tsai & Partners. If the reader has any suggestions or questions, please do not hesitate to contact Lee, Tsai & Partners.
