Technology M&A 2025

THAILAND Trends and Developments Contributed by: Nuchaya Timrat, Naris Asavathongkul and Piyachai Wijitvongtong, Baker McKenzie

Draft Royal Decree on Business Operations that Use Artificial Intelligence Systems This Draft Royal Decree aims to regulate AI systems based on risk levels with differentia- tion of the regulatory approach for each of the risks: Unacceptable Risk (prohibited); High Risk (requiring registration and risk management); and Limited Risk (transparency obligations). The Draft Royal Decree underwent a public hearing in late 2022. The final form and implementation of this legislation are yet to be determined.

Upcoming Regulations Draft Platform Economy Act

This Draft Act’s principles propose to regulate a large number of digital platforms and related services, including (i) intermediary services; (ii) hosting services; (iii) online platforms; (iv) very large online platforms; and (v) gatekeeping plat- forms, both onshore and offshore. The key obli- gations mentioned in this Draft Act’s principles include transparency requirements, complaint mechanisms, reporting procedures, and content moderation. Additionally, the Draft Act’s princi- ple aims to incorporate preventive measures to maintain fair competition in the platform econ- omy. Both the Electronic Transactions Develop- ment Agency (ETDA) and the Trade Competition Commission of Thailand (TCCT) will act as regu- lators under this Draft Act. The public hearing period for the principles that will form the official draft PEA and their potential impacts concluded on 15 December 2024. The Draft Act is currently under the development and enforcement details of this legislative proposal are yet to be finalised. Draft Act on the Promotion and Support of AI Innovations in Thailand This Draft Act aims to promote and provide necessary support for the development of the AI ecosystem through legal mechanisms such as benefits for registration (access to the AI sandbox programme, databases to train AI, and AI Clinic); prescribed algorithm standards (such as human agency and oversight and technical robustness and safety); standard contractual terms for AI service providers; risk assessment; set-up of an AI compensation fund; and confi- dentiality of AI system data. This Draft Act aims to create an environment suitable for AI develop- ment. The definitive version and enactment of this regulation remain pending.

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