The volatile nature of US tariff policy and the tensions it engenders have created a challenging global economic environment. Yet despite these tensions Taiwan’s AI exports have surged, with orders up more than 19% year-on-year as of August 2025. This comes even after a recent tariff tariff hike to 20% from the U.S.
Taipei City is channelling this momentum into its vision of becoming a hub for AI innovation, embedding AI across both industry and events to create a virtuous cycle of innovation—from semiconductor leadership and ICT strength to startup growth, smart city adoption, and international collaboration.
Dean Chang, Specialist at the Taipei City Government Hi-Tech Promotion Center, Department of Economic Development (DOED), shares his insights on Taipei’s vision of being an AI innovation city, the ecosystem of talent, startups, and global partnerships that is powering the city’s AI growth, and how Taipei’s developments in AI bring benefits to both residents and businesses.
Could you share on Taipei’s vision to be Asia’s leading AI innovation city and a global partner in shaping responsible AI?
With its robust technological foundation, highly skilled talent pool, and international environment, Taipei has demonstrated strong potential for AI development. The city government will continue to foster a sustainable and globally connected AI ecosystem through policy guidance and cross-sector collaboration. The key strategies are as follows:
- Strengthen cross-domain applications: Integrate AI with sectors such as healthcare, finance, education, and cultural creativity to develop differentiated application scenarios.
- Establish data-sharing platforms: Accelerate the opening of public data, enhance data governance standards, and support enterprises in AI model training.
- Enhance talent cultivation and retention: Promote industry-academia collaboration, international exchange, and professional training to prevent talent outflow.
- Promote AI adoption among SMEs: Provide technical and financial assistance to help small and medium enterprises improve operational efficiency through AI.
- Deepen international cooperation: Participate in international standard-setting and cross-border research to attract foreign investment and strengthen global influence.
What is the ecosystem of talent, startups, and global partnerships powering Taipei’s AI growth?
Taipei boasts the most concentrated education and research resources in the nation, with 25 universities and colleges in the city that produce over 42,000 higher education graduates annually, providing businesses with a stable and high-quality talent pool.
At the same time, Taipei has gathered core strengths in software development, cloud computing, data applications, and corporate headquarters operations, forming a complete AI innovation and application ecosystem, along with a one-stop, customized investment service platform for enterprises.
Technology giants such as Google, Microsoft, and NVIDIA have established presences here, fostering technological exchange.
How is Taipei’s AI adoption delivering real-world improvements in citizen services?
In 2024, the Taipei City Government took the lead nationwide and remains the only local government in Taiwan to establish the “Guidelines for the Use of Artificial Intelligence by the Taipei City Government.” These guidelines provide clear operational procedures and standards, encouraging civil servants to boldly experiment with integrating AI into municipal governance and public services.
At the same time, they ensure the safe and responsible use of AI technologies, including safeguarding personal privacy and preventing inappropriate content.
In practical applications, for example, the “1999 Citizen Hotline” has incorporated AI technology to automatically convert speech to text, perform real-time searches, and respond to citizens’ inquiries, significantly shortening processing times and reducing manpower requirements.
How is Taipei navigating trade challenges while building a resilient, future-ready AI economy?
In response to challenges posed by international trade tensions and supply chain restructuring, the Taipei City Government upholds the principle of “Wait for no one, depend on no one, act with initiative” by establishing a cross-departmental task team that regularly coordinates response strategies.
The city government also actively supports local enterprises in expanding overseas markets through the “Digital Business Center,” which promotes cross-border e-commerce strategies, and the implementation of the “Trade Mission Program,” organizing delegations to participate in international exhibitions to strengthen cooperation with potential buyers and strategic partners.
These actions have enhanced the global connectivity and resilience of Taipei’s industries, ensuring the city remains strong and competitive amid global economic changes.
What do these policies and innovations mean for SMEs in Taiwan and the region?
The rapid development of artificial intelligence is becoming a key driver for SMEs in advancing digital transformation and innovation upgrades. To help businesses seize this transformation opportunity, the Taipei City Government established the “Digital Business Center” in 2023, providing one-stop professional consulting and implementation support services.
The center assists companies in formulating digital transformation strategies, adopting AI tools and data applications, and improving operational efficiency and market competitiveness.
Through this platform, we aim to empower enterprises of all sizes and industries to boldly adopt innovative technologies, explore new business opportunities, and truly realize “AI for All.”
Looking ahead to 2025, Taipei will continue to deepen AI applications and talent cultivation for SMEs. The “SME Knowledge Academy” curriculum is built around three main themes: “AI Applications,” “Sustainable Talent,” and “Industry Trends.” The AI practical courses place special emphasis on common sectors such as retail, food and beverage, fast-moving consumer goods, and beauty services, equipping enterprise talent to integrate AI technology into daily operations and decision-making processes.
This initiative not only strengthens the AI capabilities of businesses but also enhances the innovative capacity and international competitiveness of SMEs in Taipei and the broader region, driving sustainable growth for the entire industrial ecosystem.
