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

June 19, 2025

Thailand Drafts AI Risk Management Guidelines for Financial Service Providers

Subscribe to Updates

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.

  1. 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 throughout the AI lifecycle. Risk management should encompass the entire AI lifecycle, from establishing risk appetite to implementing continuous risk assessment and control measures tailored to specific use cases. When AI systems are used in strategic functions or customer interactions (e.g., loan approval, account opening), human oversight must be integrated into decision-making processes. In customer interactions with AI systems, customers should be notified and have options to disable or bypass AI features.
  1. Development and security controls: Financial service providers should have risk controls covering the AI development and deployment lifecycle as follows:
    • Data risk. Financial service providers should have measures to assess and ensure the quality, accuracy, currency, volume, and diversity of data used in AI model training. They should also implement data leakage prevention measures.
    • Model development risk. Financial service providers should have (1) clear evaluation metrics for assessing model accuracy and reliability through ongoing testing and monitoring both before and after deployment and (2) measures to ensure the explainability of AI outcomes. For generative AI applications, there should be specific measures to reduce AI hallucination risks.
    • Cybersecurity risk. Financial service providers should have measures to prevent and detect emerging cyber threats targeting AI systems, based on established standards such as the OWASP Machine Learning Security Top 10.

For more details on any aspect of fintech, technology, and cybersecurity in Thailand, please contact Athistha Chitranukroh at [email protected], Nopparat Lalitkomon at [email protected], Pornpan Wichawut at [email protected], Napassorn Lertussavavivat at [email protected], or Rujaporn Paritsantik at [email protected].

Related Professionals

Industries

Fintech

Technology

Practices

Banking and Finance

Location

RELATED INSIGHTS​ 

August 22, 2023
On August 17, 2023, the Thai government rolled out a royal decree that provides certain exemptions to data controllers’ obligations under the Personal Data Protection Act B.E. 2562 (PDPA). The royal decree, which will come into effect after the lapse of 150 days from its publication in the Government Gazette, reflects the government’s ongoing quest to strike a balance between privacy, state interests, and the data protection regulatory burden on organizations. The royal decree seeks to clarify the circumstances in which data controllers—including business operators and state agencies—are exempt from certain PDPA requirements on the collection, use, and disclosure of personal data and data subject rights. In doing so, it establishes three foundational pillars in considering exemptions: Collection or requests for personal data are to be for the public interest pursuant to the purpose and scope prescribed by any law authorizing a state agency to carry out a certain action, without imposing an undue burden on the data controller responsible for disclosing the personal information. Data controllers can share personal data without the data subject’s consent if legally authorized state agencies request it and specify the statutory provisions granting authority to request the data. Data subjects and data controllers of requested personal data must have the right to submit complaints to the PDPA’s Expert Committee or seek its expertise for clarification or determination. Under the three foundational pillars, data controllers will be partially exempted from certain requirements under the PDPA when the following state agencies request personal data: The National Anti-Corruption Commission or other government entities with mandates aligned with anticorruption laws; The Revenue Department, Customs Department, Excise Department, or other governmental units operating under taxation laws; Local governmental bodies recognized by the Personal Data Protection Committee (PDPC), or any government unit with mandates as per the laws related
Read More
July 31, 2023
On July 13, 2023, Thailand’s Personal Data Protection Committee (PDPC) published a draft notification on the requirements for appointment of a data protection officer (DPO). Under the Personal Data Protection Act B.E. 2562 (PDPA), data controllers or data processors must appoint a DPO if: The data controller or data processor is a state agency as prescribed by the PDPC (the list of state agencies was published in the Government Gazette on July 18, 2023); The activities of the data controller or data processor in relation to the processing of the personal data require “regular monitoring of the personal data or the system,” by reason of “having large-scale personal data” as prescribed by the PDPC; or The core activity of the data controller or data processor is related to the processing of special categories of personal data (e.g., health-related data, biometric data, etc.). The draft notification’s criteria for determining whether a processing activity (1) requires regular monitoring of the personal data or the system, and (2) involves large-scale personal data are outlined below. General Principles When determining whether processing of personal data requires regular monitoring due to having large-scale personal data, it is likely that only the “core activity” of the data controller or data processor is to be taken into consideration. The term “core activity” denotes an essential and integral activity directly related to the primary operations of the data controller or data processor and does not include any supplementary business activities. Regular Monitoring of Personal Data or Systems According to the draft notification, activities related to processing personal data require regular monitoring of the personal data or the system if: The core part of the data controller’s or data processor’s activities consists of tracking, monitoring, analyzing, or predicting the behavior, attitude, or profile of individuals; and These activities
Read More
July 31, 2023
Vietnam’s Decree No. 72/2013/ND-CP, as amended by Decree 27/2018/ND-CP (referred to collectively as “Decree 72”) regulates internet services and online information, and plays a crucial role in governing significant services such as social networks, online games, and aggregated information websites, as well as key matters like domain names and online information security. Given the rapid pace of development in these areas, Decree 72—having been in effect for nearly a decade—is in need of an update. The Ministry of Information and Communications (MIC) had initially intended to draft an amendment to Decree 72 in 2021. However, the magnitude of required changes made it impractical to retain the form of an amending decree, leading the MIC to shift its focus toward replacing Decree 72 entirely. As a result, a new draft decree to replace Decree 72 (the “Draft Decree”) was released by the MIC for public consultation from July 17 to September 15, 2023. The Draft Decree is comprehensive, with six chapters, 87 articles, and an appendix of 56 forms. The following are some of the main issues covered by the new Draft Decree. 1. Social Network Services Classification and licensing/notification Social network services include onshore and offshore social network services. Onshore social network services refer to those provided by organizations or enterprises with legal status in Vietnam, and are divided into “high-visitor” or “low-visitor” categories based on number of regular visitors. The high-visitor category includes social networks with total visits of 10,000 or more per month for six consecutive months or with more than 1,000 regular members in a month. High-visitor onshore social network service providers must obtain a license to provide social network services. Low-visitor onshore social network service providers only need to notify the MIC’s Authority of Broadcasting and Electronic Information (ABEI) and receive the ABEI’s written notification
Read More
July 28, 2023
Myanmar’s Ministry of Commerce (MOC) issued three notifications related to e-commerce on July 21, 2023, classifying online retail businesses as essential services, requiring them to register with the relevant authorities, and setting the criteria for their registration. Under Notification No. 49/2023 the MOC authorized the Department of Trade (DOT) to issue notifications, orders, and directives relating to online retail businesses. This was followed by Notification No. 50/2023, which classifies online retail businesses as essential services under the Essential Supplies and Services Law and requires them to register with the DOT within six months of the issuance of the notification (i.e., by January 21, 2024). Failure to register within the specified period will be punishable by imprisonment for six months to three years and a fine of up to MMK 500,000 (approx. USD 238). Finally, under Notification No. 51/2023, the MOC set out the criteria and requirements for the registration of online retail businesses by entities, business institutions, and individuals, as well as the duties and liabilities of sellers and consumers. Pursuant to this notification, registration should be completed via the DOT’s online system, fees must be paid digitally, and electronic registration certificates will be issued. Certificates are initially valid for two years, and can be renewed. The MOC will provide information at a later time on the prescribed forms, certificate format, registration and online fees, and online registration portal. In applying for registration, an entity or business institution established under the Myanmar Companies Law, Special Company Act, Co-operative Society Law, or any other existing Myanmar laws must have a website with its own domain name or an online channel with an exact address that is used for online sales and a registered business address within Myanmar. Individual applicants must be at least 18 years old, reside in Myanmar, and
Read More