Thailand AI policy news shows that while no standalone AI law exists yet, foreign businesses must comply with the PDPA, Foreign Business Act, and sector-specific regulations. The BOI offers strong incentives for AI companies, including 100% foreign ownership and tax exemptions. A risk-based AI regulatory framework is expected from 2026, meaning businesses should prepare for stricter rules on high-risk AI, data governance, and automated decision-making.
Introduction :
Thailand represents one of Southeast Asia’s most promising markets for artificial intelligence. Foreign AI businesses that have been keeping an eye on Thailand AI policy news will be aware that commercial demand for AI solutions is growing rapidly, but the regulatory framework governing AI is still developing.
Due to the regular developments and updates in AI regulation, companies planning to do business in Thailand should understand the current regulatory framework and anticipated policy changes.
Thailand has been very active when it comes to AI policy planning. The National AI Strategy and Action Plan (2022–2027) sets the government’s direction, the Personal Data Protection Act B.E. 2562 (PDPA) has been fully enforced since June 2022, and the Electronic Transactions Development Agency (ETDA) held public hearings on draft AI legislation throughout 2025.
This guide covers the essential Thailand AI policy news you should be aware of, including the current state of Thailand’s AI policy framework, the PDPA obligations of an AI company, the BOI incentives available to technology businesses, how to structure your company for market entry, and the upcoming regulation you should be preparing for now.
Points clés
- Thailand does not yet have a standalone AI law, but foreign businesses must already comply with the PDPA, the Foreign Business Act, and sector-specific regulations while a dedicated AI Act is being drafted.
- The PDPA applies to any company processing personal data of people in Thailand regardless of where the company is based.
- The BOI offers significant incentives to AI companies, including propriété étrangère à 100 %, corporate income tax exemptions of up to eight years, and relaxed work permit requirements that bypass the standard four-to-one Thai-to-foreign employee ratio.
- The ETDA is consolidating earlier draft instruments into a single risk-based AI framework expected to introduce prohibited-risk and high-risk AI classifications, mandatory impact assessments, and expanded enforcement around automated decision-making.
What Is Thailand’s Current AI Policy Framework?
Thailand has not yet implemented a standalone AI law as of 2026. Instead, the framework governing AI is based upon the National AI Policy and Ethics Guidelines developed by NSTDA and NECTEC, the Personal Data Protection Act B.E. 2562 (PDPA), and sectoral regulations issued by bodies such as the Bank of Thailand, the FDA, and the SEC for fintech and health AI applications.
The Ministry of Digital Economy and Society (MDES) also plays an important role in AI governance, while the Digital Economy Promotion Agency (DEPA) focuses on industry promotion and skills development. Together, they coordinate Thailand’s approach to balancing innovation and oversight.
The National AI Strategy 2022–2027 has worked towards setting targets for AI professionals, startup development, and sectoral adoption across healthcare, agriculture, and government services.
Le Board of Investment Thailand (BOI) has also designated AI and digital services as a targeted S-curve industry.
The absence of a dedicated AI law creates both opportunity and uncertainty for foreign businesses and investors. Foreign investors can currently operate AI services without AI-specific licensing, but must comply with the PDPA, the Foreign Business Act (FBA), and any sector-specific rules that apply.
While Thailand does not yet have a dedicated AI law, the current framework already provides guidance through data protection rules, sector regulations, and national strategy initiatives. For businesses operating in the AI sector, this means that compliance still requires careful attention to existing laws such as the PDPA and the Foreign Business Act, alongside any industry-specific requirements. As Thailand continues developing its approach to AI governance, companies entering the market should stay informed about regulatory developments and structure their operations in a way that can adapt as new policies emerge.
At Lex Nova, our team closely monitors Thailand AI policy news allowing us to keep our clients up to date and compliant with current obligations and ready for any new ones.
PDPA and AI: What Foreign Companies Must Comply With
The Personal Data Protection Act B.E. 2562 (PDPA) has been fully in force since June 2022. This is one of the most important areas of Thailand’s data protection law for AI companies, and a focus of Thailand AI policy news.
The PDPA applies to any company processing personal data of individuals in Thailand, regardless of where that company is based. If your AI product collects, analyses, or stores data from Thai users, you are subject to the PDPA.
AI businesses typically trigger four key PDPA obligations. First, you must establish a lawful basis for processing personal data, consent is the most common basis, but legitimate interest and contractual necessity also apply in specific contexts.
Second, you must respect data subject rights, including the right to access, correct, and delete personal data.
Third, in the event of a breach, you are required to notify the Personal Data Protection Committee (PDPC) within 72 hours.
Fourth, the PDPA restricts cross-border data transfers, meaning data sent outside Thailand must be suitably protected through mechanisms such as Binding Corporate Rules or Standard Contractual Clauses.
AI can create PDPA risks in several ways under Thailand data protection law. Training data may contain personal data that was not collected with appropriate consent for AI use. Profiling and automated decision-making create transparency obligations as individuals have the right to know when decisions affecting them are made by AI. Vendors and third-party processors require formal data processing agreements. Without these, your business is in breach of its PDPA requirements and may be subject to any penalties.
Penalties under the PDPA Thailand are significant. Administrative fines can be up to 5 million THB per violation. Criminal penalties include fines up to 1 million THB and imprisonment of up to one year for intentional misuse of sensitive data. The PDPC has also moved away from awareness-building to active enforcement. For example, in August 2025, the regulator issued over 21.5 million THB in administrative fines across multiple cases in both the public and private sectors.
The Personal Data Protection Commission (PDPC) is the enforcement authority introduced to make sure the PDPA is properly enforced. The PDPC has been increasingly active since 2024, when it issued its first major penalty of 7 million THB against an online retailer.
The PDPC operates a “zero data breach” policy that suggests that enforcement under PDPA Thailand will continue to grow. Foreign AI businesses monitoring Thailand AI policy news should ensure that if they do enter the Thai market they are fully aware of their obligations under the PDPA.
BOI Incentives for AI and Technology Businesses
The BOI has identified AI as a priority sector and actively promotes AI, software, and digital services as an important industry under Thailand’s S-curve policy. For foreign companies, this means access to significant benefits that can really help operate a business as a foreign er in Thailand.
Benefits include, 100% foreign ownership, substantial tax holidays and operational incentives such as reduced work permit requirements offer a significant advantage in the BOI Thailand technology landscape.
Eligible Activities for AI Companies in Thailand
The main BOI promotion categories relevant to AI businesses include Activity 8.1.1 for software development, digital platforms, and digital content. Related activities in automation and robotics and smart electronics may also apply depending on your specific operations. Eligibility depends on the nature of your AI activities, and proper classification at the application stage is important.
If you are an AI company considering entering the Thai market and applying for a BOI promotion, why not talk to one of our experts. We recommend undertaking an eligibility assessment to confirm whether your business activities are eligible for a promotion and under which category you can apply.
What Benefits and Incentives are Available to AI Companies with a BOI Promotion
The key BOI incentives for eligible projects include 100% foreign ownership, corporate income tax (CIT) exemption for typically five to eight years, import duty exemptions on machinery and essential equipment, and permission to hire foreign skilled workers with reduced requirements.
The 100% foreign ownership benefit is the most important benefit for BOI Thailand technology projects. BOI-promoted companies can be wholly foreign-owned in activity categories that would otherwise require a Foreign Business License under the Foreign Business Act. This removes the need for Thai majority shareholders and gives you full control over corporate structure, IP, and management.
For AI companies, the reduced requirements for work permit facilitation are particularly important, BOI-promoted companies are not bound by the standard four-to-one Thai-to-foreign employee ratio.
The Eastern Economic Corridor (EEC) offers additional incentives for tech businesses, including extended CIT exemptions and land ownership options in designated zones. Digital and AI investments were among the BOI’s top priority sectors for 2025, with over 500 billion THB in new and planned tech investments attracted through high-level government engagement. For businesses following Thailand ai policy news, the EEC represents one of the most attractive investment zones in Southeast Asia.
It is important to note that your BOI application in Thailand for AI-related activities requires demonstrating technology transfer or capability development in Thailand. This includes workforce training plans, collaboration with Thai institutions, and commitments to developing local talent. The application must be positioned correctly from the outset, misclassification or weak positioning can result in rejection or reduced incentives. Our experts have experience in assisting with BOI applications and can provide assistance from determining eligibility, preparing your application and interview to post approval compliance.
Lire aussi :
Actualités BOI : Les mises à jour des avantages accordés aux investisseurs étrangers en 2026
Upcoming AI Regulation: What Is Coming in 2026 and Beyond
Thailand is currently developing a dedicated AI Act, which is one of the most important areas of Thailand AI policy news for foreign businesses to follow. In May 2025, the Electronic Transactions Development Agency (ETDA) held public sessions on Draft Principles for AI Legislation and accepted public comments through June 2025.
These draft principles consolidate two earlier instruments, the 2022 Draft Royal Decree on Business Operations Using AI Systems and the 2023 Draft Act on the Promotion and Support of AI Innovation, into a single framework.
Three further developments are also expected. First, a risk-based AI classification system similar to the EU AI Act. This system will be used to distinguish between prohibited-risk AI (systems whose harm cannot be mitigated) and high-risk AI (permitted subject to strict governance duties).
Secondly, mandatory AI impact assessments will be required for high-risk applications in healthcare, financial services, and HR decision-making.
Finally, expanded PDPC enforcement around automated decision-making and profiling, building on the PDPA’s existing framework.
In preparation of these developments, businesses working with AI in Thailand should begin preparing for a more structured regulatory environment. Establishing clear data governance policies, appointing data protection officers where appropriate, and documenting AI risk management processes can significantly reduce the burden when new requirements such as AI risk classifications and impact assessments are introduced. Taking these steps early is more convenient rather than attempting to adjust systems after new regulations take effect.
Thailand has also signed onto the ASEAN Guide on AI Governance and Ethics, ratified in 2024, and the ASEAN Responsible AI Roadmap (2025–2030) adopted in March 2025. These will establish regional harmonisation of AI governance principles, including transparency, fairness, and accountability.
Thailand AI policy news shows that Thailand is actively shaping regional standards. Regulatory monitoring is ongoing work, to ensure companies stay on top of their obligations and reduce any potential risks.
Common Legal Challenges for Foreign AI Companies in Thailand
While Thailand offers exciting opportunities for AI companies, foreign businesses entering the market should also be aware of several legal and regulatory challenges. These issues often arise at the intersection of data protection, foreign ownership rules, employment requirements, and tax compliance. As frequently highlighted in Thailand AI policy news, understanding these risks early can help AI companies structure their operations correctly and avoid costly adjustments later.
PDPA compliance for AI training data
Many foreign companies are unaware that data scraped or licensed for AI model training may include personal data of Thai individuals. By using this data, AI businesses are subject to the full PDPA obligations.
If training data was not collected with appropriate consent for AI use, you face significant risks from the beginning. Understanding the PDPA Thailand requirements regularly saves significant cost and legal exposure.
Work permit quotas for technical talent
AI companies usually rely on foreign engineers, data scientists, and developers, but the standard four-to-one Thai-to-foreign employee ratio can be a large obstacle for tech teams. Applying for a BOI promotion resolves this by providing more flexible foreign employee quotas and faster processing.
Every foreign employee in Thailand needs to obtain the correct Visa and Work Permit. This requirement also applies to companies promoted by the BOI, however BOI companies are not subject to the same requirements as other company structures. For example, BOI promoted companies are not restricted by the same mandatory capital (2 million THB) and minimum Thai staff (4 Thai employees) requirement for each foreign employee.
Pour pouvoir embaucher du personnel étranger, l'entreprise doit s'enregistrer auprès du système « Guichet unique pour les visas et les permis de travail » (anciennement connu sous le nom de système E-Expert). L'enregistrement sur ce système permettra à l'entreprise de soumettre de futures demandes de travailleurs étrangers.
Une fois qu'une offre d'emploi a été soumise, approuvée et acceptée via le système « Single Window for Visas & Work Permits », le candidat peut demander un visa et un permis de travail.
Les entreprises du BOI bénéficient de privilèges simplifiés en matière d'immigration. Nous coordonnons les permis de travail, les prolongations de long terme et les visas pour les personnes à charge par le biais de nos services d'immigration et de visas en Thaïlande.
Two less significant challenges highlighted through Thailand’s AIpolicy news include, IP ownership in employee AI outputs. In such a situation, Thai intellectual property law applies to works created by employees in Thailand, and your employment contracts must clearly address AI-generated IP to avoid disputes. Our Thailand labor law and employment compliance team can assist and advise on these provisions.
Secondly, VAT registration for digital services: foreign companies selling digital services to Thai customers must register for VAT, and doing business within the Thailand AI landscape requires careful attention to indirect tax obligations.
Why Foreign AI Companies Choose Lex Nova Partners
Lex Nova Partners is an international law firm based in Bangkok providing corporate, immigration, tax, and compliance services to foreign businesses entering Thailand. Our legal team in Bangkok works with technology companies, investors, and entrepreneurs who need practical, results-oriented legal support.
The main advantage for foreign AI businesses is our full-service approach. Our team can assist with corporate structuring, BOI applications, work permits, and PDPA compliance in a coordinated way. Working with multiple specialist firms creates gaps, delays, and conflicting advice.
Lex Nova can handle everything from one office, ensuring that your corporate structure supports your tax position, your BOI promotion aligns with your immigration needs, and your data compliance programme is compliant from the beginning.
Lex Nova offers solutions based on our experience with technology sector clients and BOI applications for digital businesses. This means we understand the specific challenges AI companies face in Thailand. We help our clients stay ahead of Thailand AI policy news and translate regulatory developments so our clients know exactly where they stand.
Frequently Asked Questions About AI Policy and Regulation in Thailand
Does Thailand have an AI law?
No, Thailand does not have a standalone AI law as of early 2026. The country’s AI governance currently rests on the PDPA, the National AI Strategy and Action Plan (2022–2027), and sector-specific regulations from bodies such as the Bank of Thailand and the SEC. However, the ETDA held public hearings on Draft Principles for AI Legislation in mid-2025, and a dedicated AI Act is expected to be prepared in 2026. Foreign businesses should prepare for a risk-based classification system that will impose specific duties on high-risk AI applications.
What is Thailand’s AI policy for foreign companies?
Thailand’s AI policy for foreign companies is defined by the requirements of the PDPA and the Foreign Business Act. Foreign AI businesses must comply with data protection obligations, obtain the correct business licence or BOI promotion for their activities, and secure work permits for foreign employees. The government actively encourages foreign AI investment through BOI incentives, including tax holidays and 100% foreign ownership.
How does PDPA affect AI businesses in Thailand?
The PDPA imposes direct obligations on any AI business processing personal data of individuals in Thailand. AI businesses must have a lawful basis for data processing, respect data subject rights to access, correction, and deletion, notify the PDPC of data breaches within 72 hours, and comply with cross-border data transfer restrictions.
AI-specific risks include training data containing personal data, profiling obligations, and the need for formal data processing agreements with vendors. Non-compliance carries administrative fines up to 5 million THB and potential criminal penalties.
Can a foreign company use AI services in Thailand?
Yes, a foreign company can use and provide AI services in Thailand, but it must comply with the Foreign Business Act and the PDPA. Most AI services fall under List 3 of the FBA, meaning majority foreign ownership requires either BOI promotion or a Foreign Business License. Companies providing AI services to Thai customers must also register for VAT on digital services and ensure PDPA compliance for any personal data they process.
Obtaining a BOI promotion is the most common route for foreign AI companies because it provides tax incentives, full foreign ownership, and work permit facilitation.
What are the data privacy requirements for AI companies in Thailand?
AI companies in Thailand must comply with the PDPA’s full requirements: obtaining consent or establishing another lawful basis for data processing, providing clear privacy notices, respecting data subject rights, reporting breaches within 72 hours, appointing a Data Protection Officer where required, and ensuring adequate safeguards for cross-border data transfers.
The PDPC has been actively enforcing the PDPA since 2024, with total fines exceeding 21.5 million THB as of August 2025. This enforcement trend is a key part of Thailand AI policy news that every foreign company should monitor. AI companies face particular scrutiny because training data, automated profiling, and algorithmic decision-making all create specific compliance obligations under the PDPA.
Does Thailand’s BOI support AI and technology businesses?
Yes, the BOI actively supports AI and technology businesses through investment promotion incentives. Software development, digital platforms, and digital content fall under Activity 8.1.1, which offers corporate income tax exemption for up to eight years, import duty exemptions, and flexible foreign employee quotas.
The BOI has also designated digital and AI as a priority sector for 2025–2026, and total tech investment applications exceeded 500 billion THB in 2025. To get in touch about your BOI application, contact our team.
What licenses does an AI company need to operate in Thailand?
An AI company in Thailand typically needs either a BOI promotion certificate or a Foreign Business License to operate with majority foreign ownership.
If your AI application is active in regulated sectors such as financial services or healthcare, you may also need sector-specific licences from the relevant Thai regulator. The specific combination of licences depends on your company’s activities, ownership structure, and target market.
How do I set up an AI company in Thailand as a foreigner?
The most common route is to apply for BOI promotion under the software and digital services category, register a Thai limited company with 100% foreign ownership, obtain work permits for your foreign team. The process typically takes four to six months from BOI application to operational readiness.
As Thailand AI Policy news continues to point towards tighter regulation, early movers benefit from establishing compliant structures before new rules take effect. Structure, tax, and immigration decisions must be coordinated from the start to avoid delays and restructuring costs. Professional legal support ensures the process runs efficiently and compliantly.
Veuillez noter que cet article est fourni à titre d'information uniquement et ne constitue pas un avis juridique.
