Recent Publications
Taiwan Economic Research Monthly
The Dawn of the AI Era: Structural Adjustment Directions for Taiwanese Enterprises
As AI permeates business operations and daily life, it has evolved from a supplementary tool into a force reshaping R&D, production, governance, talent development, and investment strategy. For Taiwanese enterprises, the challenge is no longer whether to adopt AI, but whether they can transform their operating models, decision-making processes, and organizational structures accordingly. This month's feature explores seven dimensions. First, AI competition is shifting from technology to governance capabilities; without data governance and risk management, advanced technologies cannot sustain productivity. Second, rising computing demands require R&D to shift toward cross-disciplinary, system-level co-design, leveraging policy resources to capture opportunities in frontier technologies such as silicon photonics. Third, manufacturers must transition toward "software-defined manufacturing," integrating software, data, and platforms to sustain advantage. AI transformation also concerns market access. As global AI regulations take shape, compliance becomes a core competitive capability, particularly for Taiwan's export-oriented enterprises. Talent development must become a long-term strategic priority across technical, application, and governance roles. As AI agents enter enterprise environments, workflows and management structures will require redesign. Enterprises should also pursue external innovation through corporate venture capital, R&D partnerships, and startup development. Ultimately, competitiveness in the AI era depends not on possessing new tools, but on completing structural adjustments that transform AI into sustainable, scalable operational profitability.