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Taiwan is set to reap the rewards from artificial intelligence (AI) following a number of investments in the emerging sector, but several headwinds may limit the country’s fortunes.
According to a report from Google, the Asian country is on course to add $103 billion to its economic benefits before the end of the decade. The technology giant shared its prediction at an event in Taipei, noting that certain sectors are poised to lead the economic gains from AI.
Tina Lin, Google Taiwan’s Managing Director of Sales and Operations, disclosed that the local manufacturing sector will be the biggest driver of AI-generated revenue in the coming years. The executive based her claims on rising adoption levels of AI models by manufacturers in Taiwan, particularly automobiles and electronics.
“The manufacturing industry is set to net the most, about NT$1.5 trillion (US$45.79 billion) or nearly 50 percent of all gains,” said Lin.
Taiwan, a key hub for semiconductor manufacturing, has seen demand rise since 2022, boosting the country’s revenue streams. Google notes that the race by leading technology companies for AI chips will benefit Taiwan, with local manufacturers scrambling to meet global demand.
The Taiwan Semiconductor Manufacturing Co. (TSMC) has begun producing 2nm chips ahead of its planned schedule, and Q2 profits are nearing the T$236.1 billion ($7.25 billion) mark.
Outside of manufacturing, firms in retail, finance, supply chain, and health are embracing AI to improve their productivity, which Google says will ultimately contribute to Taiwan’s GDP. However, the climb to AI-backed success will not be easy for Taiwan with Google highlighting some challenges. South Korea and Vietnam are angling to snag a portion of Taiwan’s semiconductor manufacturing share, while geopolitical tensions with China may hinder capital injection by investors.
“Taiwan has key advantages in developing AI, such as outstanding semiconductor and ICT industries, tech talent, and a population willing to embrace new technology,” said Anita Chen, Google Taiwan’s Head of Government Affairs and Public Policy. “But in the competitive world of AI, every decision could impact Taiwan’s ability to retain its competitive edge.”
AI bill offers a glimmer of hope
In an attempt to police the nascent AI ecosystem, Taiwan has rolled out a draft bill for AI developers and other service providers in the industry. The bill, the brainchild of the National Science and Technology Council (NSTC), seeks to introduce licensing, disclosure, and labeling guidelines for industry players.
Experts say Taiwan’s approach to AI mirrors its regulation of blockchain technology and digital assets. It is proceeding with caution but still embracing the technology. Previously, the Taiwanese government proposed a two-year jail term for executives of digital asset firms who failed to comply with its rules.
In order for artificial intelligence (AI) to work right within the law and thrive in the face of growing challenges, it needs to integrate an enterprise blockchain system that ensures data input quality and ownership—allowing it to keep data safe while also guaranteeing the immutability of data. Check out CoinGeek’s coverage on this emerging tech to learn more why Enterprise blockchain will be the backbone of AI.
Watch: Transformative AI applications are coming
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