#39 Asia AI Policy
🇻🇳 AI Industrial Policy Codified · 🇰🇷 Trust-Based AI Enforcement & Ad Disclosure · 🇮🇳 Copyright Litigation Risk Rises · 🇦🇺 Criminal & Civil Deepfake Controls · 🇺🇿 Rights-Based AI Ethics...
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2025 Predictions: How’d we do?
We took a shot at predicting how 2025 would pan out for Asia AI Policy, and made 7 predictions; how did we do? Next month - see our 2026 predictions…
More talk of Indigenous AI - which just means more industrial policy to get data, compute and talent onshore.
Proof is in the legislation. Vietnam’s AI Law is a perfect example of how countries are using industrial policy to move data, compute and talent for AI onshore.
The political economy of AI’s energy gets more attention in developed Asia: Japan, Taiwan, Singapore and South Korea consider AI compute’s energy alternatives.
Not much progress on this, but discussions about SE Asia nuclear is happening.
More AI legislation - on top of South Korea’s recent AI Basic Act - with important distinctions from the EU AI Act (no Brussels Effect).
Japan and Vietnam joined South Korea with legislation. Very different from EU AI Act - so no Brussels Effect.
Copyright rules around Asia are amended to be more friendly to the AI industry in terms of use of copyrighted material for data training - but expect at least one litigation arise against genAI companies on copyright infringement.
Yes, although no rules were amended, although Australia’s Productivity Commission recommended such changes (the gov’t pushed back in the end). Litigation is going on in India and Japan against LLM providers.
Multi-pronged enforcement efforts against deepfake pornography - or consensual intimate imagery - will occur.
In Australia, we saw some legislation on this matter.
Industrial policy trumps the softer side of AI governance, in terms of dollars and attention from governments across Asia.
Yes, although not as much as we would have assumed.
Discussions of ethical Military AI in Asia becomes more urgent.
We see in this edition, China’s attention to this issue (below under Cybersecurity & Military), which is very important.
Legislation
Vietnam’s AI Legislation passed the National Assembly and will come into force March 1, 2026.
The law sets the maximum administrative fine at VNĐ2 billion (over US$75,800 ) for violating collectives and VNĐ1 billion for individuals. For serious violations, the maximum fine may reach up to 2 per cent of the violating collective’s revenue in the preceding year. The law also introduces development mechanisms similar to Japan, such as top-tier incentives, controlled sandbox testing, a National AI Development Fund, and a voucher scheme for startups. Oversight will be centralized under the Government, with the Ministry of Science and Technology as the lead coordinator.
Intellectual Property
Subcommittee on AI and Copyright in India published preliminary report for feedback.
The Committee had detailed deliberations on the TDM exception model recommended by the tech industry, however, this approach was not found to be a prudent policy approach. Allowing such an exception under law for commercial purposes would undermine copyright and it would leave human creators powerless to seek compensation for use of their works in AI Training. It was not found to be a wise policy choice, especially for a country like India which has a rich cultural heritage and a growing content industry with immense potential.
Industry feedback from tech companies supported including a TDM exception to the copyright laws in India.
As an overarching comment, we urge the Committee to consider introducing a clear text and data mining (TDM) exception to provide legal certainty for AI development and use in India while respecting the interests of copyright owners.
Governance
Uzbekistan issued a public consultation on AI ethics guidelines.
Rights and obligations of developers and implementers of artificial intelligence systems
Developers and implementers of SI systems have the following rights in accordance with current legislative acts:
protect their intellectual property in accordance with the procedure established by law;
patenting innovative technologies and algorithms;
work under fair wages and decent working conditions;
South Korea to require AI generated ads to include notifications.
South Korea will require advertisers to label their ads made with artificial intelligence technologies from next year as it seeks to curb a surge of deceptive promotions featuring fabricated experts or deep-faked celebrities endorsing food or pharmaceutical products on social media.
Following a policy meeting chaired by Prime Minister Kim Min-seok on Wednesday, officials said they will ramp up screening and removal of problematic AI-generated ads and impose punitive fines, citing growing risks to consumers — especially older people who struggle to tell whether content is AI-made.
Cybersecurity & Military
China’s State Council Information Office published a white paper on arms control with a focus on AI.
Security risks and challenges in emerging fields are becoming more prominent. With the rapid development of emerging technologies, uncontrolled use of technologies, data theft, technological crimes, and violation of ethics are on the rise. These issues highlight the absence of international rules and the lag in governance systems. The militarization trend in emerging fields is accelerating. This is destabilizing traditional principles of warfare and war ethics and posing new challenges to global security.
The Cybersecurity regulators in Australia, Germany, Netherlands, New Zealand, United Kingdom, and United States of America issued guidance on secure integration of AI into operational technology.
Understand AI. Understand the unique risks and potential impacts of AI integration into OT environments, the importance of educating personnel on these risks, and the secure AI development lifecycle.
Consider AI Use in the OT Domain. Assess the specific business case for AI use in OT environments and manage OT data security risks, the role of vendors, and the immediate and long-term challenges of AI integration.
Establish AI Governance and Assurance Frameworks. Implement robust governance mechanisms, integrate AI into existing security frameworks, continuously test and evaluate AI models, and consider regulatory compliance.
Embed Safety and Security Practices Into AI and AI-Enabled OT Systems. Implement oversight mechanisms to ensure the safe operation and cybersecurity of AI-enabled OT systems, maintain transparency, and integrate AI into incident response plans.
Multilateral
Japan and Central Asian countries(Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan) cooperate on AI.
They also agreed to make efforts toward "safe, secure, and trustworthy artificial intelligence.
The G7 issued a ministerial on AI.
We also recognize the importance of working together to enhance AI adoption in our public sectors. This year we launched the G7 AI Network, bringing together our public sector AI leaders. Together, we hosted a series of rapid solution labs to spur innovation, enhance collaboration across our AI ecosystems and address common challenges we all face. We continue to work together to develop tools to expand the use of AI in government and reduce duplicative effort by developing a catalogue of open-source and shareable AI solutions, putting forward a roadmap to scale AI solutions across government, and initiating discussions on measuring the impact of AI for our communities.
China’s President Xi Jinping set out the APEC 2026 themes.
“ China stands ready to take this as an opportunity to bring all parties together to advance the goal of an Asia-Pacific community, promote growth and prosperity in the region, energize practical cooperation on priorities including the Free Trade Area of the Asia-Pacific (FTAAP), connectivity, digital economy and AI, so as to inject greater vitality and impetus to development in the Asia-Pacific and deliver more benefits to the people of the region.”
China-ASEAN deepen AI cooperation.
China will implement the Global AI Governance Initiative, and actively carry out communication, exchanges and practical cooperation with ASEAN countries in potential risk response, standardization of security governance, and the formulation of policies, laws and regulations related to security governance in the area of AI, with a view to jointly preventing the misuse of AI technologies.
2.2 China stands ready to support and encourage Chinese AI companies, universities, research institutions and industrial associations to strengthen exchanges and cooperation with their counterparts in ASEAN countries, so as to promote the interoperability and compatibility of relevant sector-specific standards and to share with each other the latest knowledge, best practices and experience.
2.3 China stands ready to enhance position coordination with ASEAN countries under multilateral platforms like the United Nations and jointly participate in the rule-making process concerning global AI governance, with the aim of achieving broad consensus in the field of international AI governance while fully respecting differences in policies and practices among countries.
In the News & Analysis
South Korea’s Science Minister claims 3% increase in GDP due to AI in future.
On the same day, there was a science and technology-related ministers' meeting.
Minister Bae outlined key initiatives, such as appropriately distributing NVIDIA's advanced GPUs promised to the South Korean government, developing a domestic Neural Processing Unit, and developing a hyper AI strategy, called an AI Highway, which aims to enhance domestic network infrastructure and strengthen industrial AI competitiveness.
"Starting next year, we must move decisively toward an AI transformation and deliver tangible results in science and technology innovation. Across all industries, from autos and shipbuilding to finance, AI and digital technologies are driving productivity and value creation. If government ministries work together, science and AI can power real economic growth."
Advocacy
Subcommittee on AI and Copyright in India published preliminary report for feedback.
The comments/feedback, if any, may be provided to this Department on email id “ipr7- dipp@gov.in” within 30 days of the publication of this letter.
Uzbekistan issued a public consultation on AI ethics guidelines.
Rights and obligations of developers and implementers of artificial intelligence systems
Developers and implementers of SI systems have the following rights in accordance with current legislative acts:
protect their intellectual property in accordance with the procedure established by law;
patenting innovative technologies and algorithms;
work under fair wages and decent working conditions;
India Copyright infringement consultation.
In this regard, inputs and experiences are invited from the concerned stakeholders in respect of: Date:07.l1.2025 Current challenges being faced in identifying and removing pirated content; Technological or procedural gaps in enforcement and coordination and measures that can strengthen proactive monitoring and takedown mechanisms; Best practices adopted internationally that may be relevant to the Indian ecosystem; and Suggestions for improving coordination between platforms, Government agencies and rights holders. Inputs/suggestions may be sent through email at digital-mediamib@gov.in within 20 days of issuance of this communication.
South Korea is receiving comments on its AI enforcement decree until Dec 22.
The Framework Act on the Development of Artificial Intelligence and the Creation of a Trust Foundation was enacted (Act No. 20676, promulgated on January 21, 2025, and effective January 22, 2026) to protect the rights and interests of the people, improve the quality of life of the people, and strengthen national competitiveness by supporting the sound development of artificial intelligence and stipulating the basic matters necessary for the creation of a trust foundation for an artificial intelligence society. Accordingly, the purpose is to establish matters delegated by law, such as the procedures for establishing and amending the basic plan for artificial intelligence, the scope of projects eligible for support for artificial intelligence research and development, and matters necessary for its implementation…
Where to send comments: Email: zsshim@korea.kr
Singapore’s Monetary Authority opened a consultation on AI and Risk Management until Jan 31.
The Monetary Authority of Singapore (MAS) is proposing to introduce Guidelines on Artificial Intelligence (AI) Risk Management (the “Guidelines”) 1 to enhance management of AI risks in financial institutions (FIs), and set out MAS’ supervisory expectations relating to AI risk management in the financial sector. The Guidelines focus on oversight of AI risk management in FIs, key AI risk management systems, policies and procedures, key AI life cycle controls, as well as capabilities and capacity needed for the use of AI.
UN’s WSIS+20 UNGA side events are open for submission of ideas.
The Asia AI Policy Monitor is the monthly newsletter for Digital Governance Asia, a non-profit organization with staff in Taipei and Seattle. If you are interested in contributing news, analysis, or participating in advocacy to promote Asia’s rights-promoting innovation in AI, please reach out to our secretariat staff at APAC GATES or Seth Hays at seth@apacgates.com.