TAIWAN-TECHNOLOGY-ROBOT
The Taiwanese government is promoting the application of AI technology in more industries, hoping to help small and medium-sized enterprises improve their production efficiency and international competitiveness.

The Ministry of Economic Affairs said Taiwan’s artificial intelligence (AI) adoption rate currently stands at about 38%, with the government aiming to raise it to 50% and expand the use of AI among traditional industries and small and medium-sized enterprises. As demand for AI continues to grow, extending its benefits beyond the technology sector has become a key challenge in boosting productivity across Taiwan’s economy.

According to a Central News Agency report, Minister of Economic Affairs J.W. Kuo said on Oct. 28 at the annual meeting of the AI Internet of Things Alliance that Taiwan’s economy could grow by 11% this year, and possibly as much as 12%, helped by advances in artificial intelligence. He described AI as a potential “electronic oil” for Taiwan’s economy and called for stronger cooperation among industries so more businesses can adopt the technology.

Kuo said the ministry has helped more than 14,000 companies adopt AI tools since last year. However, Taiwan has more than 1.7 million small, medium-sized and micro enterprises, meaning the current scale of government support remains short of overall demand. The government has established an industry competitiveness advisory team and hopes to lower the barriers to adoption through industry platforms and supply-chain cooperation.

Beyond automation and data analysis, AI applications can help companies improve quality control and production efficiency. They can also convert the knowledge and experience accumulated by senior technical personnel into models or knowledge systems that employees can use, easing the challenges of passing on expertise.

However, a higher AI adoption rate does not necessarily mean that every company has achieved significant benefits. Businesses must still consider data quality, cybersecurity, employee training, system integration costs and the return on investment to ensure that the technology delivers genuine operational improvements.

For Taiwan, the next stage is not simply to increase the number of companies using AI. The priority is also to help traditional manufacturers, service providers and SMEs develop sustainable applications and further expand AI’s tangible contribution to the broader economy.