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NSTC announced the draft Artificial Intelligence Basic Act
NSTC announced the draft Artificial Intelligence Basic Act
Ken-Ying Tseng / Sam Huang
In view of the rapid development of artificial intelligence (“AI”) in recent years, and in order to establish a legal environment conducive to the development of AI technology and applications while taking into account human rights and relevant risks, the National Science and Technology Council (“NSTC”) announced the draft Artificial Intelligence Basic Act (“Draft Act”) on July 15, 2024. Below is a summary of the Draft Act:
1. To differentiate AI from other software systems, pursuant to Article 2 of the Draft Act, AI refers to “a machine-based system that can operate autonomously and, by means of machine learning and algorithms, achieve outputs that influence the physical or virtual environment (such as predictions, content, recommendations, or decisions) for explicit or implied goals through inputs or sensors.”
2. To mitigate the risks incurred from AI innovation and development while taking into account the public interests and digital equality, Article 3 of the Draft Act stipulates that the government shall comply with the following fundamental principles when promoting the R&D and application of AI:
(1) Sustainable Development and Well-being: Consider social fairness and environmental sustainability, provide suitable education and training, and reduce possible digital divide.
(2) Human Autonomy: Uphold human autonomy, respect fundamental rights and cultural values, and implement basic human-centric values.
(3) Privacy Protection and Data Governance: Appropriately protect the privacy of personal data and promote the release and reuse of non-sensitive data.
(4) Information Security and Safety: Establish information security measures to ensure system robustness and safety.
(5) Transparency and Explainability: AI-generated content should be appropriately disclosed or labeled to facilitate the assessment of potential risks and understanding of their impact on stakeholders.
(6) Fairness and Non-discrimination: Avoid algorithm bias and discrimination as much as possible.
(7) Accountability: Ensure appropriate accountability, including internal governance responsibilities and external social responsibilities.
3. Articles 4 to 17 of the Draft Act further set out various policy objectives based on the aforementioned fundamental principles and the government’s priorities, including innovation and cooperation, talent cultivation, protection of rights, risk management, utilization of data, adaption of laws/regulations, etc.
Similar to other “basic acts” (such as the Road Traffic Safety Basic Act and the Science and Technology Basic Act), the Draft Act aims to stipulate the government’s high-level tasks to promote AI development and does not impose any specific regulatory requirements for AI. However, the Draft Act stipulates that the Ministry of Digital Affairs shall promote a risk classification framework for AI that aligns with international standards so that the central competent authorities in charge of the relevant industries may further stipulate risk classification regulations for those industries under their supervision. Moreover, after the enactment and implementation of the Draft Act, the central competent authorities in charge of the relevant industries should review and adapt their laws/regulations in accordance with the provisions of the Draft Act; before the enactment or amendment of the relevant laws/regulations, they should, together with the NSTC, interpret and apply existing laws/regulations in accordance with the provisions of the Draft Act.
It is worth observing the developments concerning the Draft Act and how the central competent authorities in charge of the relevant industries will adapt their laws/regulations and establish risk classification regulations for those industries under their supervision after the enactment of the Draft Act. Should you have any questions regarding the Draft Act, please do not hesitate to contact any member of our Digital, TMT, and Data Privacy Practice Group.