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

July 2, 2026

Thailand Releases New Draft Artificial Intelligence Act

Subscribe to Updates

Thailand’s Electronic Transactions Development Agency (ETDA) released a new version of the draft Act on Artificial Intelligence on July 2, 2026, for a public hearing period expected to be approximately 30 days. The draft act adopts a risk-based regulatory approach modeled in part on international frameworks—particularly the EU’s AI Act—while incorporating provisions tailored to Thailand’s regulatory landscape and digital economy objectives. If enacted in its current form, the law would introduce extraterritorial obligations, a tiered risk classification system, strict liability for AI-related damages, and new transparency requirements for AI-generated content.

Scope and Extraterritorial Application

The draft act applies to AI development, deployment, or any other action affecting people in Thailand, even if the action occurs outside the country. Of note:

  • This extraterritorial reach creates compliance obligations for global AI companies whose systems impact Thai residents or consumers, even if the provider has no physical presence in Thailand.
  • Foreign AI providers serving Thai deployers or users must appoint a local coordinator or authorized representative. Depending on the type of AI system, the representative may need full authority to act on behalf of the provider without any limitation of liability.
  • Certain activities are exempt from the draft act’s oversight, including AI used by natural persons solely for personal or household activities, AI for educational research conducted by higher education institutions with ethics committee approval, research and development activities conducted prior to distribution or service provision, and other AI systems prescribed by royal decree.

Risk-Based Classification Framework

The draft act establishes a tiered risk classification system with three main categories:

  • Prohibited AI. The act outright prohibits AI systems employing cognitive-behavioral manipulation using subliminal techniques, AI systems causing unfair broad-scale discrimination from processing irrelevant data, and other categories of serious risk as determined by announcement of a forthcoming committee that will be responsible for national AI planning.
  • High-risk AI. High-risk AI systems are those designated by royal decree as affecting national security, health, environment, energy, telecommunications, transport, or public utilities.
  • Designated AI systems. A subsequent royal decree may additionally require regulator notification, registration, or licensing of certain AI systems before deployment.

Obligations for High-Risk AI System Providers and Deployers

Providers of high-risk AI must develop systems that are efficient and fit for purpose, transparent in operation, subject to meaningful human control, fair and nondiscriminatory, and aligned with foreseeable risks. The regulator may announce risk oversight guidelines covering 13 areas, including risk management, bias prevention, cybersecurity, human oversight, transparency, and complaint handling.

Deployers must implement risk management systems, follow provider instructions, assign capable oversight personnel, mitigate damage from AI-related incidents, retain operational logs for a minimum period (six months under the Thai text), and notify authorities of unforeseen risks.

Transparency Obligations for AI-Generated Content

The draft act introduces transparency requirements for content generation by AI systems:

  • Developers of AI systems capable of generating or modifying images, audio, or video must assess risks, implement mitigation measures, and embed machine-readable marks to identify AI-generated content.
  • Persons who introduce AI-generated content relating to national security, election-related content, investment credibility, food or drug properties, impersonation, or illegal acts into public systems must disclose that it is AI-generated or AI-modified content.
  • Platform providers face specific obligations, including risk assessment, providing reporting channels, verifying AI content, displaying labels, and preparing annual operational summaries.

Data Localization and Contract-Controlled AI Businesses

The draft act grants the forthcoming national AI planning committee authority over data and contracting requirements in sensitive sectors:

  • The committee may designate “contract-controlled AI businesses” applicable to services provided to government or critical infrastructure agencies, and may prescribe mandatory contract terms addressing data processing, risk management, security, modification and termination procedures, and post-termination obligations.
  • The committee may also require data processing within Thailand for AI services of national importance. This introduces uncertainty for cloud-based AI services and may require infrastructure investment in Thailand.

Strict Liability Regime

The draft act imposes joint liability for damages regardless of willful act or negligence—a strict liability standard. Defenses are limited to force majeure, the victim’s own act or omission, or compliance with an official order.

Enforcement and Penalties

The draft act establishes an enforcement framework, with escalating consequences for noncompliance:

  • The regulator may order providers and deployers to rectify insufficient measures.
  • With ministerial approval, the regulator may petition the court to order temporary service suspension, product recall, or deployment suspension.
  • If providers fail to comply, the regulator may petition the court to order ISPs to block AI system dissemination in Thailand.

Administrative fines range from THB 1 million to THB 5 million, depending on the nature of the violation.

AI Product Launches, Regulatory Sandbox, and Self-Regulation

The draft act also establishes a regulatory sandbox framework for testing AI systems in regulated sectors, data-sharing infrastructure through Thailand’s Big Data Institute (a national public organization), and frameworks for self-regulation and best practices. Compliance with self-regulatory best practices may also serve as selection criteria for government investment promotion programs.

Implementation Approach and Next Steps

There will be a phased implementation of the draft act’s measures. Core measures related to the launching of AI products take effect immediately upon publication. Risk control, supervision, and serious incident provisions take effect 180 days after publication, providing a compliance preparation window for affected businesses.

Organizations that develop, deploy, or rely on AI systems affecting persons in Thailand should begin assessing their compliance. They are also encouraged to submit comments on the draft act to the Ministry of Digital Economy and Society during the public hearing period.

Related Professionals

Industries

Technology

Location

RELATED INSIGHTS​ 

September 7, 2026
On September 4, 2026, Thailand’s prime minister convened the first meeting of the Data Center Business Policy Committee. The committee endorsed a draft policy framework for the data center industry and tasked four subcommittees with developing the standards that would sit beneath it, shifting away from fragmented, agency-by-agency approvals toward a unified national strategy aiming to maximize economic value while managing environmental and infrastructure concerns. Proposed Scope and Pillars of the National Data Center Policy Framework The proposed framework would cover all types of data centers, including internal or captive facilities operated within a company or its affiliates, rather than only commercial third-party providers. If adopted in this form, companies running private data centers purely for internal purposes would also become subject to regulatory oversight. Minimum safety and operational standards would be established, with uniform enforcement across all categories. The committee endorsed a draft policy framework with four key pillars: Industrial classification: Data centers exceeding 2 MW would be classified as industrial operations, which may require factory licenses and environmental impact assessments under the Factory Act. Resource pricing: Utility rates would be structured to reflect both direct and indirect costs, supporting green energy and green data center standards. Centralized screening: A centralized review would evaluate project suitability and resource allocation. Operators may be required to submit proposals through periodic “pitching” rounds, where projects are competitively assessed on their potential economic and strategic benefits to Thailand. Digital ecosystem: The framework would prioritize data sovereignty, tax incentives, and conditions promoting domestic digital businesses, AI, and cloud infrastructure. Multidimensional Evaluation Criteria and Subcommittees Four subcommittees will be established to develop standards responsible for the following dimensions: Economic: Criteria for assessing the economic viability of data center projects, for use in prioritizing data centers based on infrastructure readiness, demand type (including AI factories),
Read More
September 4, 2026
Foreign business restrictions on telecommunications, treasury center businesses, and intragroup support services were eased when Thailand published the Ministerial Regulation Prescribing Service Businesses Not Requiring Permission for Foreign Business Operations (No. 5) B.E. 2569 (2026) in the Government Gazette on August 28, 2026. The ministerial regulation expands the categories of service businesses that foreign investors may operate without a foreign business license (FBL) under the Foreign Business Act B.E. 2542 (1999) (FBA). Of particular relevance to the telecommunications, fintech, and technology sectors, the ministerial regulation exempts: Type 1 telecommunications licensees, which do not have their own networks; Treasury center businesses operated in accordance with Thailand’s exchange control regulations; and Certain intragroup administrative, human resources, and information technology management services. Telecommunications Services Foreign-owned businesses providing telecommunications services under a type 1 telecommunications license may now operate without obtaining an FBL. This may streamline market entry for qualifying telecommunications and digital infrastructure businesses. The exemption applies only to the FBA licensing requirement. Operators must continue to comply with applicable requirements under the Telecommunications Business Act and the regulations of the National Broadcasting and Telecommunications Commission, and the change does not affect foreign ownership restrictions applicable to type 2 or type 3 telecommunications businesses. Treasury Center Businesses The ministerial regulation also exempts qualifying treasury center businesses from the FBL requirement. This may facilitate centralized treasury functions in Thailand, including liquidity management, foreign exchange management, and intragroup funding arrangements. Treasury center operations remain subject to applicable requirements of the Bank of Thailand and other competent authorities. Intragroup Administrative, HR, and IT Services Certain administrative, human resources, and information technology management services provided between affiliated entities are also exempt, provided the relevant entities satisfy prescribed ownership or management criteria. The exemption is available where the service provider and recipient are related through specified ownership
Read More
September 2, 2026
Thailand and China have a longstanding and significant trade relationship, which increasingly extends to e-commerce and digitally enabled supply chains. While these channels create new opportunities for businesses to reach consumers across borders, their growth also brings greater exposure to intellectual property (IP) infringement across jurisdictions and online platforms. Effective cooperation between the two countries’ enforcement authorities has therefore become increasingly important. To strengthen cooperation in this area, Thailand and China signed a memorandum of understanding (MOU) on IP enforcement in Beijing on July 20, 2026, during the Thai prime minister’s official visit to China. Officially titled “Memorandum of Understanding Between the State Administration for Market Regulation of the People’s Republic of China and the Ministry of Commerce of the Kingdom of Thailand on Cooperation in the Field of Intellectual Property Enforcement,” the MOU forms part of a broader bilateral agenda covering industrial and supply chains, participation by micro, small, and medium-sized enterprises (MSMEs), cooperation associated with the ASEAN–China Free Trade Area 3.0, and progress on the registration of Thai geographical indications in China. The MOU establishes a bilateral framework for cooperation and coordination in five broad areas: Strengthening dialogue in IP enforcement; Enhancing information sharing; Facilitating the enforcement of IP rights in cases arising in the parties’ domestic markets and on online platforms, in accordance with their respective domestic laws; Promoting cooperation in IP enforcement training and human resource development; and Undertaking other cooperation activities agreed upon by both sides. The Department of Intellectual Property (DIP) will serve as the principal coordinating agency for Thailand, while the Bureau of Law Enforcement and Inspection in China’s State Administration for Market Regulation (SAMR) will serve in that role for China. The framework is particularly relevant to the growth of e-commerce, as it covers infringement in the domestic markets and on
Read More
August 25, 2026
Vietnam has enacted a new decree establishing administrative penalties for violations in the fields of cybersecurity and personal data protection. Decree No. 330/2026/NĐ-CP (Decree 330), issued and effective from August 19, 2026, provides a detailed sanctions framework for noncompliance with the Law on Personal Data Protection (including its implementing regulations under Decree 356/2025/ND-CP) and the Law on Cybersecurity, together with their guiding decrees. The issuance of Decree 330 signals that the practical grace period previously perceived by many businesses may be drawing to a close, with active regulatory enforcement in these areas expected to commence in earnest. Scope and Key Provisions Decree 330 has extraterritorial effect and applies to both onshore and offshore companies. For offshore companies, it applies to those that (1) provide telecommunications, internet, online-content, information-technology, cybersecurity, or cross-border services and (2) are involved in or related to the processing of personal data of Vietnamese citizens and certain other people of Vietnamese origin. Decree 330’s key provisions cover the following areas: Administrative penalties for violations relating to the protection of national security and public order in cyberspace, including the dissemination of unlawful, false, or unverified information. Sanctions for cyberattacks, unauthorized access, introduction of harmful code or programs, and failure to cooperate with specialized cybersecurity forces. Sanctions for personal data protection violations, such as consent, cross-border data transfers, impact assessments, breach notification, and data-subject rights, among others—with maximum fines of up to 5% of an organization’s preceding-year revenue for cross-border transfer violations, or up to VND 3 billion for other data-protection breaches. Personal Data Protection Penalties The key sanctions for personal data protection violations are as follows: Consent violations: Fines of up to VND 70 million (approx. USD 2,642), plus potential additional sanctions and remedial measures including irreversible deletion of personal data collected without consent and confiscation of
Read More