AI: Possible Regulations

Thailand is shaping the future of artificial intelligence (AI) through a public consultation led by the Electronic Transactions Development Agency (ETDA) from May 10 to June 9, 2025. AI offers immense potential to boost economic growth, enhance industries, and improve quality of life, but it also raises concerns about data privacy, system security, fairness, and ethical impacts. Building on lessons from earlier drafts, such as the 2022 Royal Decree on Business Operations using AI Systems and the 2023 Act on AI Innovation Promotion, which faced criticism for broad frameworks and burdensome rules, ETDA’s new draft principles aim to balance innovation with responsibility. The consultation seeks public input on four key areas: AI risk management, industry promotion, user rights, and enforcement mechanisms.

1. AI Risk Management Principles:

To ensure safe AI development and use, the draft principles propose a risk-based approach:

• Risk Level Assignment: Instead of fixed criteria for Prohibited-risk or High-risk AI, industry-specific regulators will collaborate to define these categories, tailoring rules to sector-specific risks.
• Domestic Representatives for Foreign Providers: Foreign AI providers must appoint local legal representatives to ensure compliance with Thai regulations.
• Incident Reporting: High-risk AI providers are required to report serious incidents to authorities, enabling a swift response to potential harms.
• User Responsibilities: AI users must maintain human oversight, log activities, ensure high-quality input data to avoid bias, assess potential impacts, and cooperate with regulators.

These measures aim to address risks like misalignment with ethical AI governance and future high-impact concerns, as highlighted by global incident databases (e.g., OECD AI Incidents Monitor).

2. Promoting the AI Industry:

To foster innovation, the draft principles encourage AI development while addressing past criticisms of regulatory burdens:

• Text and Data Mining (TDM): Inspired by the EU, Thailand proposes allowing TDM for research and development, enabling access to copyrighted data for AI training.
• Regulatory Sandboxes: Controlled testing environments will support real-world AI trials, reuse of privacy data for public-interest projects, or penalty-free “safe harbor” zones for developers.
• AI Governance Clinic (AIGC): Established in 2022, the AIGC provides technical and practical guidance to public and private sectors, streamlining compliance and innovation.

These initiatives aim to create a supportive ecosystem for AI startups and established players alike.

3. Rights of AI Users:

The draft principles prioritize user protections, ensuring individuals affected by high-risk AI have clear rights:

• Right to be Informed: Individuals must be notified when AI impacts them, fostering transparency.
• Right to Explanation: Users can request clear explanations of how AI systems function and influence decisions, particularly when affecting their lives or security.
• Right to Oppose AI Decisions: Individuals can challenge AI-generated decisions and request human-led alternatives, safeguarding autonomy.

These rights, inspired by frameworks like the EU AI Act, empower users and build public trust in AI systems.

4. Enforcement and Penalties:

To ensure compliance, the draft principles outline enforcement and penalty mechanisms, with a focus on emerging risks:

• Generative AI Misuse: Beyond existing laws like the Computer-Related-Offense Act, ETDA is exploring criminal penalties for misuse of generative AI, such as creating deepfakes or election-related misinformation (e.g., false audio, images, or videos).
• Enforcement Measures: Administrative orders can halt the use or distribution of Prohibited-risk or misused High-risk AI. If violations persist, regulators may propose collaboration with the Ministry of Digital Economy and Society to restrict access via internet service providers, though this is under consultation.
• Penalties: Penalties remain flexible, potentially including fines, disqualification from innovation support, or administrative measures, depending on whether governance is mandatory or voluntary. Specifics are still under review.

Conclusion:

ETDA’s public consultation advances Thailand’s efforts to foster an environment where AI innovation thrives while ensuring responsible use and protection for stakeholders. This consultation offers a vital opportunity for stakeholders to shape AI governance, enabling technological progress while upholding public trust and ethical standards.

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

• Thailand’s Proposed Updates to the Non-Preferential Certificate of Origin Framework for Exports to the United States and the European Union
• Thailand’s Expanding Trade Network: Key Updates on FTAs with Partner Countries
• Thailand FDA — Proposed Food Labelling Rules for Prepackaged Foods
• U.S. Tariff Developments Post Supreme Court Ruling
• FDA: Food and Drug Administration Proposes Revised Food Advertising Notification
• Employment vs Liberal Profession

Telemedical Services: Navigating the Digital Healthcare Frontier

With the integration of technology into virtually every aspect of life, it is undeniable that the medical sector also requires technological innovations to reform traditional medical practices. This transformation necessitates close monitoring and regulation to ensure that service recipients are well protected—not only in terms of health and safety but also in safeguarding their personal information and privacy. The Ministry of Public Health recognizes the importance of establishing standards for both public health services and private telemedical service providers to ensure that telemedical services are efficient, convenient, fast, safe, standardized, verifiable, and in line with the principles of good governance. As a result, the Ministry has issued the Announcement on the Service Standards for Telemedical Service Providers and Telemedicine Public Health Services (the “Announcement”).

Under the Announcement, Telemedical Services refer to the provision of medical consultation, examination, diagnosis, treatment, nursing, disease prevention, health promotion, and physical rehabilitation remotely, using a digital system to transmit audio and video data.

The Announcement outlines the criteria required for telemedical service providers and the systems they use. Some of these criteria are:

• There must be a sufficient number of medical practitioners to provide telemedical services without disrupting normal operations at each medical establishment.
• There must be a registration and identity verification process for both service recipients and providers. This system must comply with the standards prescribed by the Electronic Transactions Development Agency and the Digital Development Agency.
• A communication system must be established between service recipients and providers. This system must be integrated with identity verification and appointment scheduling in an appropriate manner.
• Date, time, medical reports, verification results, and other relevant information must be recorded in audio, picture, text, or video format.
• A process must be in place to explain the details, procedures, potential effects, and risks to the service recipient before telemedical services are provided, including obtaining consent.
• A document, manual, or guideline for providing telemedical services must be created, in accordance with the standards set by the Office of Permanent Secretary, Ministry of Public Health.
• Telemedical services must include the delivery of medicines and medical supplies to patients’ house.

Although detailed criteria for each qualification are yet to be fully outlined, this Announcement effectively serves as a checklist for telemedical service providers to assess whether their systems align with the regulated standards.

It is recommended that the telemedical service providers conduct comprehensive internal audits, develop adaptive compliance strategies, maintain flexible operational frameworks, and anticipate future regulatory refinements.

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

• Thailand’s Proposed Updates to the Non-Preferential Certificate of Origin Framework for Exports to the United States and the European Union
• Thailand’s Expanding Trade Network: Key Updates on FTAs with Partner Countries
• Thailand FDA — Proposed Food Labelling Rules for Prepackaged Foods
• U.S. Tariff Developments Post Supreme Court Ruling
• FDA: Food and Drug Administration Proposes Revised Food Advertising Notification
• Employment vs Liberal Profession

Economic: Comprehensive Strategy Proposed by Thailand’s Private Sector to Drive Sustainable Growth

As Thailand grapples with a complex web of economic challenges, including a global economic slowdown, weak domestic recovery, and constraints faced by small and medium-sized enterprises (SMEs) in accessing credit, the country’s private sector has come together to present a comprehensive strategy to revitalize the economy.

The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB), a coalition of prominent business associations, has compiled a detailed White Paper, outlining a multi-faceted approach to tackle the pressing issues and unlock Thailand’s full economic potential. This White Paper was recently presented to the Prime Minister during a meeting between the Prime Minister and JSCCIB.

The JSCCIB’s White Paper identifies four key areas of focus: economic problem-solving, assistance for SMEs, water management, and enhancing the country’s competitiveness. Within these areas, the private sector has proposed a range of policy measures, including:

1. Reducing the burden of living costs for the public and operating costs for businesses i.e. controlling essential goods and services prices, restricting electricity and diesel fuel prices, increasing the minimum wage, and solving debt problems, especially non-performing auto loans.
2. Implementing energy price reductions and restructuring.
3. Implementing economic stimulus measures e.g. digital wallet, increasing purchasing power, Easy e-receipt, and other tax incentives.
4. Enhancing the competitive capabilities of entrepreneurs e.g. using data-driven strategies to promote Thai products on e-commerce platforms, increasing investment measures with a focus on local content, and imposing taxes on foreign digital services.
5. Supporting SME development i.e. easing loan approval requirements, promoting and pushing entrepreneurs towards adopting Smart SMEs, and improving laws and regulations to facilitate ease of doing business.
6. Developing a corporate digital authentication system (Corporate Digital ID).
7. Urgently overhauling regulations and procedures related to licensing and the use of technology in government operations.
8. Enhancing investment in the Eastern Economic Corridor (EEC) i.e. improving large-scale infrastructure, proposing incentives to encourage and attract investment in the EEC, and expanding the EEC to include Prachinburi province, which would significantly boost investment in the region.
9. Facilitating trans-shipment i.e. establishing a transshipment sandbox for container ships at Laem Chabang Port for a 1-year period.
10. Developing logistics infrastructure and promoting border trade, resolving restrictions and obstacles in transporting goods from Thailand to neighboring countries, and amending regulations to enhance the efficiency of importing and exporting goods.
11. Safeguarding domestic industries and enhancing the global standing of Thai products.
12. Promoting the transformation of the automotive industry e.g. transitioning from combustion engines to future vehicles, expanding and maintaining the automotive production base.
13. Promoting a Green Economy or Eco-friendly Economy, including bioeconomy, circular materials, and waste symbiosis.
14. Implementing policies to foster a cashless and digital economy and providing tax incentives for businesses adopting transition finance and green investments.
15. Implementing policies to attract foreign investment and establish Thailand as a regional economic hub.

The JSCCIB believes that the partnership between the government and the private sector will effectively implement the proposed measures to address economic challenges and revitalize Thailand’s economy. The ambitious target is to achieve a sustainable GDP growth rate of 3-5% or more in the near future.

Key Takeaways from the White Paper:

1. Easing the Burden: The strategy calls for measures to reduce the burden of living costs for the public and operating costs for businesses. This includes controlling the prices of essential goods and services, restricting electricity and diesel fuel prices, increasing the minimum wage, and solving debt problems, particularly non-performing auto loans.
2. Boosting Competitiveness: The proposals aim to enhance the competitive capabilities of entrepreneurs and promote Thai products. This involves using data-driven strategies to market Thai goods on e-commerce platforms, increasing investment measures with a focus on local content, and imposing taxes on foreign digital services.
3. Empowering SMEs: The White Paper emphasizes the need to support SME development, including easing loan approval requirements, promoting the adoption of smart technologies, and improving laws and regulations to facilitate ease of doing business.
4. Strengthening Infrastructure and Trade: The strategy underscores the importance of developing logistics infrastructure and fostering cross-border trade. This includes facilitating transshipment at Laem Chabang Port, resolving restrictions in transporting goods to neighboring countries, and amending regulations to enhance the efficiency of importing and exporting.
5. Regulatory Overhaul: The JSCCIB calls for an urgent overhaul of regulations and procedures related to licensing and the use of technology in government operations, recognizing the need to streamline bureaucratic processes.
6. Embracing Sustainability: The proposals incorporate a strong emphasis on promoting a green and sustainable economy, including the transition towards a circular economy, the bioeconomy, and the transformation of the automotive industry.
7. Digital Transformation: The strategy underscores the significance of digital transformation, with initiatives such as the development of a corporate digital authentication system and the promotion of a cashless and digital economy.

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

• Thailand’s Proposed Updates to the Non-Preferential Certificate of Origin Framework for Exports to the United States and the European Union
• Thailand’s Expanding Trade Network: Key Updates on FTAs with Partner Countries
• Thailand FDA — Proposed Food Labelling Rules for Prepackaged Foods
• U.S. Tariff Developments Post Supreme Court Ruling
• FDA: Food and Drug Administration Proposes Revised Food Advertising Notification
• Employment vs Liberal Profession

Technology: Thailand Accelerates Digital Transformation through National Digital Economy and Society Committee Initiatives

Thailand’s National Digital Economy and Society Committee (NDESC) recently convened its third meeting of 2024, steering the country’s digital transformation agenda forward on multiple fronts. Chaired by the Deputy Prime Minister and Minister of Digital Economy and Society, the high-level committee reviewed and endorsed several key initiatives aimed at modernizing government operations, enhancing public service delivery, and bolstering the nation’s digital infrastructure and cybersecurity.

e-Office:

A primary focus of the meeting was the expanded use of electronic documents within the government’s e-Office system, which operates on the Government Data Center and Cloud Service (GDCC) platform. The committee set an ambitious target of reaching 3 million e-Office users by 2027, underscoring the administration’s commitment to digitalizing public administration and transitioning towards a truly paperless governance model.

Cloud First Policy:

In parallel, the NDESC oversaw the progress of various specialized sub-committees tasked with driving specific aspects of the digital agenda. This included the Cloud First Policy committee, which is working to establish legal frameworks and management standards for the government’s adoption of cloud computing services. Additionally, a dedicated sub-committee was formed to oversee the integration and optimization of the country’s nationwide network of closed-circuit television (CCTV) systems, aimed at reducing redundancies, lowering costs, and enabling more effective data utilization.

Smart City:

Beyond the digitalization of government operations, the NDESC also prioritized the acceleration of smart city development across Thailand. Recognizing the transformative potential of connected urban environments, the committee placed this strategic initiative under the purview of the Committee for Promotion and Development of Digital for Economy and Society, ensuring a coordinated, whole-of-government approach to urban modernization.

Cybersecurity Safeguards:

Complementing these technological advancements, the NDESC also addressed the critical issue of cybersecurity. Tasking the National Cyber Security Agency (NCSA) to develop comprehensive guidelines for government agencies, the committee aimed to bolster the protection of personal data and mitigate the risks of information leaks, a pressing concern in the digital age.

Through these multifaceted initiatives, Thailand’s National Digital Economy and Society Committee is spearheading the country’s digital transformation journey, leveraging the power of technology to modernize public services, enhance economic competitiveness, and safeguard national interests in the rapidly evolving digital landscape.

Key Takeaways:

1. The National Digital Economy and Society Committee (NDESC) chaired a meeting to discuss important initiatives for driving the country’s economic and social development through digital transformation.
2. The meeting reviewed the progress on the use of electronic documents in the e-Office system under the Government Data Center and Cloud Service (GDCC), aiming to have 3 million users by 2027.
3. The committee discussed the progress of various sub-committees established under the Digital Development for Economy and Society Act, including those focused on cloud computing policies, legal frameworks for government cloud procurement, and cloud service management standards.
4. The NDESC endorsed the acceleration of smart city development, with the Smart City initiative now falling under the purview of the Committee for Promotion and Development of Digital for Economy and Society.
5. The committee also addressed the need to integrate and optimize the use of closed-circuit television (CCTV) systems nationwide, to reduce duplication and enable effective data management and utilization.
6. Regarding cybersecurity, the NDESC tasked the National Cyber Security Agency (NCSA) to propose guidelines for government agencies to prevent personal data leaks, which will be reviewed by the National Cyber Security Committee and the Cabinet.

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

• Thailand’s Proposed Updates to the Non-Preferential Certificate of Origin Framework for Exports to the United States and the European Union
• Thailand’s Expanding Trade Network: Key Updates on FTAs with Partner Countries
• Thailand FDA — Proposed Food Labelling Rules for Prepackaged Foods
• U.S. Tariff Developments Post Supreme Court Ruling
• FDA: Food and Drug Administration Proposes Revised Food Advertising Notification
• Employment vs Liberal Profession

New Regulation to Protect Consumers in COD Transactions

Thailand’s digital economy is set to see significant changes with the introduction of new regulations governing Cash on Delivery (COD) services. Following our previous article on the Thailand Implements Comprehensive Regulations for Cash-on-Delivery (COD) Services to Enhance Consumer Protection, the new regulation, titled “Designating Goods Delivery Services with Cash on Delivery as a Business with Controlled Receipt of Payment Items B.E. 2567 (2024),” will come into effect on 3 October 2024.

Under the new rules, logistics providers offering COD services will be required to include essential details on shipping documents. These include information about the sender, the logistics company, and the name and surname of the person receiving payment, along with a parcel tracking number. This increased transparency aims to enhance accountability in online transactions.

A key feature of the regulation is the mandatory 5-day holding period for payments. Logistics companies must retain the payment for five days before transferring it to the seller. This provision gives consumers a reasonable timeframe to report issues and request refunds if problems arise with their purchases.

The regulation also empowers consumers with the right to inspect goods before making payment. If upon inspection, the items are found to be different from what was ordered or have quality issues, consumers can refuse payment and reject the delivery on the spot.

Detailed Consumer Rights for Refunds and Returns

The new regulation provides specific scenarios where consumers are entitled to refunds:

1. If the received goods do not match the order or are defective, the business operator must accept the return from the consumer, send it back to the sender, and refund the consumer.
2. In cases where the consumer did not order the goods but received and paid for them if it can be proven that the consumer did not place the order, the business operator must accept the return and refund the consumer.
3. When the business operator receives payment from the consumer, they must hold the funds for five days from the date of delivery and payment. If the consumer does not request a refund within this period, the business operator can then transfer the money to the sender. However, if the consumer reports issues within the five-day period (such as receiving unordered goods, mismatched orders, or defective items), and the business operator confirms these issues after inspection, they must refund the full amount to the consumer within 15 days of receiving the complaint. The goods are then returned to the sender.
4. If the consumer receives and opens the package in the presence of the business operator, the process must be documented through photographs, video, or other evidence. If both parties find that the goods do not match the order or are defective, the consumer has the right to refuse acceptance of the goods.

It is important to note that these refund criteria do not apply to cases where consumers request refunds for reasons other than those specified above.

This comprehensive approach to regulating COD services reflects the government’s commitment to addressing the challenges in the rapidly growing e-commerce sector. By providing clearer guidelines and stronger consumer protections, the regulation aims to boost confidence in online shopping and promote a more trustworthy digital marketplace in Thailand.

Key Takeaways:

1. New regulation for Cash on Delivery (COD) services effective October 3, 2024
2. Aims to address issues in online shopping using COD
3. Requires detailed information on shipping documents
4. Implements a 5-day holding period for payments
5. Allows consumers to inspect goods before payment
6. Provides clear guidelines for refunds and returns

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

• Thailand’s Proposed Updates to the Non-Preferential Certificate of Origin Framework for Exports to the United States and the European Union
• Thailand’s Expanding Trade Network: Key Updates on FTAs with Partner Countries
• Thailand FDA — Proposed Food Labelling Rules for Prepackaged Foods
• U.S. Tariff Developments Post Supreme Court Ruling
• FDA: Food and Drug Administration Proposes Revised Food Advertising Notification
• Employment vs Liberal Profession

ETDA Guidelines for e-Transactions and e-Contracts: A Comprehensive Guide

Introduction

The Electronic Transactions Development Agency (ETDA) of Thailand has issued Guidelines for Conducting Electronic Transactions or Contracts under the Electronic Transactions law. These guidelines aim to facilitate the practical application of technology and electronic transaction laws in everyday dealings while establishing a standardized framework for e-transactions and e-contracts (collectively referred to as e-Contracts).

Key Phases of e-Contract Management

The Guidelines outline standards for three main phases of e-Contract management:

1. Creation of the e-Contract
2. Maintenance of the e-Contract
3. Conversion between e-Contract and printout

Phase 1: Creation of the e-Contract

1.1 Drafting: e-Contracts can be created using any available means, provided they remain accessible and usable in the future without its meaning being altered. Common applications include Microsoft Word and Google Docs.

1.2 Electronic Signature: It must identify the signatory and indicate approval of information contained therein. Valid methods include trustworthy digital signatures and digital identification data (e.g., ThaiID application).

1.3 Electronic Seal: Similar to electronic signatures, it must identify the seal owner and indicate approval of information contained therein. Options include embedding a seal image or using identification certificates.

1.4 Finalization: To ensure admissibility as evidence, the e-Contract’s originality must be provable from creation to completion, often using digital signatures, electronic timestamps, or electronic seals.

1.5 Stamp Duty: For contracts requiring stamp duty, electronic payment through the Revenue Department is allowed, with the reference number and receipt annexed to the e-Contract.

Phase 2: Maintenance of e-Contract

2.1 The e-Contract must remain accessible and unaltered in content (changes to fonts or formatting are acceptable if they do not affect the content).

2.2 An event log must be maintained, recording the origin, recipient, date, and time of sending or receiving the e-Contract.

Phase 3: Conversion Between e-Contract and Printout

3.1 Printout to e-Contract: Content and format must remain unaltered, using ETDA-approved technologies. The converter’s identity must be recorded.

3.2 e-Contract to Printout: This must be printed from the original e-Contract and reviewed for complete accuracy.

Key Takeaways

1. The ETDA Guidelines provide a comprehensive framework for creating, maintaining, and converting e-Contracts in Thailand.
2. Electronic signatures and seals must be capable of identifying the signatory/sealer and indicating their approval of the information contained therein.
3. The originality and integrity of e-Contracts must be maintained throughout their lifecycle to ensure legal admissibility.
4. Stamp duty can be paid electronically and attached to the e-Contract.
5. Conversion between electronic and physical formats must preserve the content and, in most cases, the formatting of the original document.
6. These guidelines promote the use of technology in everyday transactions while ensuring the security and legal validity of e-Contracts.
7. As technology evolves, adherence to these guidelines will become increasingly important for businesses and individuals engaging in electronic transactions.

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

• Thailand’s Proposed Updates to the Non-Preferential Certificate of Origin Framework for Exports to the United States and the European Union
• Thailand’s Expanding Trade Network: Key Updates on FTAs with Partner Countries
• Thailand FDA — Proposed Food Labelling Rules for Prepackaged Foods
• U.S. Tariff Developments Post Supreme Court Ruling
• FDA: Food and Drug Administration Proposes Revised Food Advertising Notification
• Employment vs Liberal Profession