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AI law faces innovation test

Thailand's draft AI law is under scrutiny for potentially hindering local AI firms, raising concerns about safeguards, liability, IP protection, and startup support.

By ASEAN Rising Newsroom7 September 2026

Balancing regulatory safeguards with local tech growth

Drafting artificial intelligence regulation is straightforward, but implementation often imposes disproportionate burdens on domestic developers. If Thailand over-indexes on liability and strict safeguards without offering clear intellectual property protections or structured startup support, local firms risk being choked by compliance costs. Policymakers must move quickly to establish workable thresholds, ensuring domestic operators can deploy capital into product development rather than legal defense.

The operational risk lies in creating broad legal obligations without the administrative capacity or guidance to enforce them fairly. Watch whether upcoming revisions introduce explicit safe harbors for early-stage builders and resolve intellectual property ownership rules. Without these precise legal mechanisms, regional venture capital will bypass local players in favor of jurisdictions with more predictable governance frameworks.

For investment committees, any capital commitment to local software operators must now price in delayed product rollouts and elevated compliance expenditures under the proposed legal draft.

#Technology#Digital Economy