You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

May 9, 2023

AI, Privacy, and Data Protection: Legal Considerations in Southeast Asia

Subscribe to Updates

The significance of artificial intelligence (AI) is rapidly increasing worldwide, and Southeast Asia is no exception, as it plays a leading role in the technological development of many industries. AI has already proven its importance for driving business growth in areas such as e-commerce, finance, and healthcare, but its remarkable potential also raises concerns around privacy. As AI systems are designed to collect and process large amounts of data to improve their operation, it is necessary to balance the development of technology with the protection of individuals’ privacy.

Current Frameworks in Southeast Asia

This concern has been on regional policymakers’ agendas for many years. The ASEAN Framework on Personal Data Protection, which was adopted in 2016, is not legally binding and has no enforcement mechanism, but it serves as a guide for ASEAN member states in developing their own data protection laws and regulations.

Domestic data privacy laws are currently in force in five ASEAN member countries—Indonesia, Malaysia, the Philippines, Thailand, and Singapore—while Vietnam’s Personal Data Protection Decree is scheduled to take effect on July 1, 2023. This presents a challenge for ASEAN members, as adopting AI-related technology can further complicate data protection efforts due to the amount of personal data AI systems collect, as well as the complexity of the data used to train the AI algorithm.

Some ASEAN members have also made progress in regulating AI. For instance, Singapore released the Model AI Governance Framework in 2019 and launched the AI Governance Testing Framework and Toolkit in 2022—the world’s first such framework. Similarly, Thailand issued the Artificial Intelligence Ethics Guideline in 2019 to help government agencies in the development, promotion, and use of AI, and in 2023 adopted the Thailand Artificial Intelligence Guidelines to help the private sector develop AI-related work. These guidelines primarily focus on principles and ethics in developing AI-related technology, but lack a step-by-step implementation process that connects with privacy laws. Despite these early steps by some countries in ASEAN, there are no regional policies or consensus frameworks on how to implement and regulate AI in accordance with privacy laws in ASEAN member countries.

Legal Risks

If AI-related technology is developed without consideration for data protection, there is a risk of breaching personal data and affecting numerous data subjects, potentially resulting in mass litigation. Moreover, the lack of robust privacy laws and frameworks in many ASEAN member countries, coupled with the growing use of AI-related technology, also increases the risk of legal liabilities for companies that make use of this increasingly common technology.

In the event of a data breach or misuse of personal data, affected individuals may seek legal recourse against the companies that collected and processed their personal information. Such legal actions can result in significant financial and reputational damages for businesses, highlighting the need for effective data protection regulations and AI-related technology frameworks in ASEAN countries.

Technology companies with connections to developing AI systems are especially vulnerable. With the vast amount of data required for developing AI systems, these companies will face the challenge of lawfully collecting and processing data from a huge range of sources and data subjects.

Outlook

As AI-related technology continues to evolve and play a crucial role in the growth of many industries in Southeast Asia, it is important to ensure that its development is balanced with the protection of individuals’ privacy. While some ASEAN members have made progress in adopting AI regulations, more needs to be done to enforce data privacy laws and develop consensus frameworks for regulating AI in accordance with privacy laws. Such efforts will not only help protect individuals’ privacy but also mitigate legal risks associated with the use of AI-related technology. ASEAN member countries must continue to work together to achieve a balance between technological development and data protection in support of sustainable and ethical innovation for our digital future.

Related Professionals

Industries

Technology

Locations

RELATED INSIGHTS​ 

June 27, 2025
Three American giants are actively protecting their intellectual property rights against generative AI, as two legal battles commence on both sides of the Atlantic. In the UK, Seattle-based media company Getty Images accuses UK-based Stability AI of multiple IP infringements. In the US, The Walt Disney Company and Universal Studios are teaming up against Midjourney, an AI startup, with their main ground being copyright infringement. Both cases are centered around questions legal minds have been posing since the introduction of generative AI: Is the output of generative AI an infringement? And who is ultimately responsible for the output, the platform or the user? Getty Images v. Stability AI Getty initially filed a claim in the High Court in 2023, which resulted in Stability applying for reverse summary judgment on the grounds that Getty had no real prospect of success, arguing that their operations took place outside the UK. However, the High Court judge hearing the case decided that the claims brought by Getty did have a real prospect of succeeding in court. Despite this, Stability saw a small victory when the court ruled that the representative action brought by Getty would not succeed due to the difficulties in identifying who qualified for the class. The proposed class was comprised of 50,000 rightsholders who alleged their rights were also infringed. Stability was successful in arguing that identifying these individuals would be challenging due to the unclear definition of the class. This current trial is centered around four main grounds: Copyright infringement. Getty accuses Stability of using content that Getty owns or has an exclusive license for when training their model, Stable Diffusion, resulting in the generated output containing substantial parts of that content. Getty is also alleging secondary copyright infringement, arguing that Stability is importing an article into the UK
Read More
June 26, 2025
Vietnam’s new Personal Data Protection Law (PDPL) was passed by the National Assembly on June 26, 2025, and will enter into force on January 1, 2026. The PDPL introduces several new concepts, exemptions, and obligations in comparison with the current Decree No. 13/2023/ND-CP on personal data protection (PDPD), while other contents remain essentially the same. The relationship between the PDPD and the PDPL has not been clearly addressed; however, it is expected that the government will issue a new decree providing necessary guidance on certain requirements under the PDPL, and the PDPD will remain in effect until it is replaced by this new decree. Some key points of the new PDPL include the following: Personal data will be further defined by lists of basic personal data and sensitive personal data to be issued by the government. The consent-centric approach of the PDPD remains in place, along with additional exemptions for certain data processing activities. The requirements for the data processing impact assessment (DPIA) and transfer impact assessment (TIA) remain unchanged. However, there are new exemptions for the TIA, including for the processing and storing in the cloud of employee data, and when the data subject is the person sending its own data outside of Vietnam. Consent obtained under the PDPD remains valid under the PDPL. DPIAs and TIAs submitted under the PDPD are valid under the PDPL but may need to be updated to be in line with the requirements of the PDPL. Administrative fines depend on the type of violation. The fine for sale and purchase of personal data will be 10 times the revenue from the sale or VND 3 billion (about USD 115,000), whichever is higher. The fine for cross-border transfer violations is 5% of the violator’s revenue of the preceding year or VND 3 billion,
Read More
June 25, 2025
Generative artificial intelligence (GenAI) is no longer a distant innovation confined to science fiction and research labs; it has become an integral part of daily business operations worldwide. Employees across industries are adopting GenAI tools at a remarkable pace—including in Southeast Asia, where a tech-savvy workforce and widespread internet and mobile access have driven early adoption. The reality facing organizations today is clear: employees are integrating GenAI into their daily work, often without official approval or clear policies. This phenomenon, often called “Bring Your Own AI,” comes out of a disconnect between organizational governance and employee behavior and reveals the urgent need for proactive AI policies and oversight. For business leaders and legal teams, GenAI is both an opportunity and a challenge. On one hand, these tools can deliver real business value and boost efficiency. On the other, the unsanctioned and unmonitored use of GenAI introduces substantial legal risks, such as data privacy violations, confidentiality breaches, and intellectual property issues. The widespread adoption of GenAI tools by employees, regardless of official organizational stance or guidelines, demonstrates that prohibition is neither practical nor effective. A more strategic approach involves establishing comprehensive governance policies that encourage responsible AI use while managing the risks. Organizations that take the lead in developing GenAI governance policies are better positioned to benefit from its transformative potential. The question isn’t whether GenAI will change how we work, but how quickly organizations can put the right safeguards in place to manage this change successfully. Risks of GenAI Use The use of GenAI in business operations, whether sanctioned or not, exposes organizations to a unique set of risks. The following are particularly relevant: Data security and confidentiality: General GenAI tools in the market may transmit data to external servers, retain conversation histories, and use inputs for model training.
Read More
June 19, 2025
The Bank of Thailand (BOT) has released draft guidelines establishing principles for managing artificial intelligence (AI) risks in the financial sector. The draft guidelines provide a structured framework for the responsible adoption of AI technologies. Financial service providers will be able to use the guidelines as a reference to appropriately manage their risks in a manner that aligns with internationally recognized best practices. The BOT is accepting public comments on the draft guidelines until June 30, 2025. Scope and Application The draft guidelines apply to all financial service providers, including financial institutions and special financial institutions under the Financial Institution Business Act, as well as payment providers under the Payment Systems Act. These guidelines supplement existing BOT risk management guidelines covering IT risk management, third-party risk management, data governance, and market conduct. The guidelines define AI systems as systems that mimic human intelligence, including machine learning, deep learning, generative AI (such as large language models), and agentic AI. This definition specifically excludes rule-based automation systems like robotic process automation and condition matching. Key Risk Management Principles The guidelines lay out two main principles in managing AI risk. Governance: Financial service providers should define and establish clear roles and responsibilities for their personnel and AI system supervision structures to uphold FEAT (fairness, ethics, accountability, and transparency) principles as follows: Stakeholder roles and responsibilities. Financial service providers should define roles and responsibilities for boards and executives on AI risk oversight. Responsibilities include establishing an AI system usage policy, designating personnel responsible for AI risk management, and building awareness of AI-related risk within the organization. AI system usage policy. The AI system usage policy should be aligned with organizational objectives, regulatory requirements, and FEAT principles. These policies should be reviewed regularly to respond to technological advancements and evolving risk profiles. Risk management
Read More