THAILAND Trends and Developments Contributed by: Nuchaya Timrat, Naris Asavathongkul, Sirapop Amorncheewanun and Tunn Junhasavasdikul, Baker McKenzie
In addition, the Draft Principles introduce measures to support Thailand’s emerging AI ecosystem, such as: • text and data mining permits for commercial pur- poses; • providing exemptions for scientific research; and • establishing safe harbours for AI sandboxes. Thailand previously proposed two AI-related draft laws: the Draft Royal Decree on Business Operations that Use Artificial Intelligence Systems, and the Draft Act on the Promotion and Support of Thailand’s Arti- ficial Intelligence Innovation. These were developed under government consultancy projects, during a period when generative AI was not yet widespread. In response to rapid advancements in AI and evolv- ing international practices, the Electronic Transactions Development Agency (ETDA) was later assigned to review and update both drafts to better reflect current technological and legal developments. This process led to the creation of the current Draft Principles, for which ETDA is expected to serve as the regulatory authority. The first version of the Draft Principles was released for public hearing in June 2025, while the related draft act and detailed legislative framework are still being finalised. Virtual bank licensing framework A virtual bank is a new type of commercial bank that operates entirely through digital channels with- out physical branches. It leverages technology and diverse data sources – including financial and behav- ioural data – to assess risk and deliver innovative financial services tailored to customer needs. Unlike mobile or internet banking, which are digital extensions of traditional banks, virtual banks are fully digital by design. The Bank of Thailand (BOT) has offi- cially closed the application process for virtual bank licences, and announced a list of approved applicants on 19 June 2025. Approved applicants must: • establish a public limited company; • comply with conditions set by the Minister of Finance; • pass a readiness assessment by the BOT; and
• begin virtual bank operations within one year of approval (by 19 June 2026). However, the Bank of Thailand and the Ministry of Finance will continue monitoring the performance of these branchless banks and may consider allowing additional operators if they demonstrate clear benefits to the financial system. Policy guidelines on risk management for the use of AI by financial institutions and payment service providers The BOT’s AI risk management policy, recently announced on 12 September 2025, only applies to: • financial institutions; • specialised financial institutions under the law gov- erning financial institution businesses; and • supervised payment service providers and pay- ment service operations that are under supervision according to the law governing payment systems. It requires these entities to manage risks across the entire AI life cycle and to comply with the “responsible AI” framework, guided by four core principles: fair- ness, ethics, accountability and transparency (FEAT). Institutions must implement technical safeguards, ensure fair consumer protection, disclose AI usage and offer opt-out options. Senior executives and board members are responsible for governance, including setting policies and defining acceptable risk levels. For critical AI applications such as loan approvals, human oversight is mandatory. Addition- ally, institutions must use secure, high-quality train- ing data, prevent data leaks, and address AI-specific cybersecurity threats using global standards. Emergency Decree on measures for the prevention and suppression of technological crimes Emergency Decree (No 2) BE 2568, which came into effect on 13 April 2025, introduces enhanced legal measures to combat the growing threat of technology- related crimes in Thailand. It expands the scope of regulated entities to include: • digital asset business operators; • payment service providers;
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