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Thailand turns pro-AI development after Big Tech, China investment rush: AI expert

By Choonsik Yoo

(November 4, 2024, 00:44 GMT | Insight) -- Thailand now finds the rapid evolution of artificial intelligence as offering far more tangible advantages than previously thought, and has shifted its policy stance toward maximizing the benefits of this innovation instead of introducing regulations on risks yet to emerge, a senior Thai expert on AI said in an exclusive interview with MLex.

The Southeast Asian country was close to adopting a largely regulation-oriented AI law ahead of its regional peers until just months ago, but is now several years away from attempting to enact one, having noticed the sea change brought about by generative AI tools such as ChatGPT, the expert told MLex.

Sak Segkhoonthod, senior advisor at the AI Governance Center of Thailand’s Electronic Transactions Development Agency, or ETDA, made the remarks during an interview, after presenting how AI innovation is affecting his country at a three-day international conference in South Korea’s southwestern city of Gwangju.

— Four or five years —

“I would say four or five years later,” Sak said of the expected timing for the legislation of a framework AI law in Thailand, pointing to the dramatic change in global discussions over how to manage the new technological innovation, especially after the capabilities of generative AI tools surprised the world.

Thailand was among the first countries in the region and among developing economies to start drafting laws with a clear focus on regulating AI. The Office of the National Digital Economy and Society Commission, or ONDE, published a draft royal decree in late 2022 to govern business operations that use AI.

Then in 2023, the ETDA also published a draft AI Act, which would govern areas such as business registration and add requirements for AI systems deemed necessary to place under strict supervision (see here). However, the country is now unlikely to pursue this legislation drive for the next four to five years, Sak said.

The shift in policy stance follows a rush by Big Tech companies such as Microsoft and Chinese firms such as Huawei to announce massive investment plans to build data centers — core facilities for AI development — in Thailand, attracted by the rich and stable supply of clean energy, the country's strategic position and low costs of doing almost everything.

— Flurry of guidelines, recommendations —

“Singapore cannot do anything now about new data centers, because it doesn't have enough land and energy available. So, Thailand is a perfect location,” he said, explaining why his country is more attractive than the rich city-state neighbor, although it trails behind in overall AI capabilities.

The interview was the first time that a senior official with direct knowledge like Sak gave a definite estimate for the period the country could wait before attempting to legislate a hard law on AI, although officials and industry watchers have indicated that authorities will not rush to enact laws to regulate AI businesses (see here).

Instead of drafting hard laws, Thailand has been introducing a flurry of guidelines and recommendations to help both developers and users of AI tools maximize benefits by applying the new technology without worrying too much about adverse effects from the lack of legally binding regulations.

For instance, Thai authorities have recently introduced a series of rules, such as Practical Guidelines by technology type and topic, an AI Job Redesign Guideline, an AI Roadmap Guideline, and an AI Procurement Guideline, with additional guidelines on other subjects in the pipeline, Sak said.

— Work with anybody —

Sak said Thailand, located roughly in the middle of East Asia and at about the center of the global income ladder, is vigilant about playing a bridging role between developed and developing countries and between countries aligned with US-led values and those friendlier with China.

“As for Thailand, we welcome anybody, and we work with the US, China, Korea, Japan and everyone else. We don’t discriminate,” he said, referring to Thailand’s close relationships with countries belonging to different political and ideological groups and with countries from different income levels.

On that note, Sak disclosed that Thailand has been confirmed to host an international forum on the ethical use of AI under the auspices of the United Nations Educational, Scientific and Cultural Organization, or UNESCO, around June 2025. He said an official announcement will be made on this around December.

While in Gwangju for the conference, Sak said he signed an agreement with the Artificial Intelligence Industry Cluster Agency, or AICA, a government-backed organization focused on developing South Korea’s AI ecosystem, to boost bilateral exchanges. The AICA oversaw the AI conference along with the central government.

He also said Thailand welcomes and will actively utilize the China-ASEAN joint statement on cooperation to build a sustainable and inclusive digital ecosystem, issued in early October in connection with a summit between leaders of China and the 10-member Association of Southeast Asian Nations, or Asean (see here).

— Money, jobs and more —

In addition to the billions of dollars flowing into the country, the Thai government hopes the benefits associated with projects by Big Tech companies and Chinese firms operating data centers to develop and test their AI systems in Thailand will support the country’s ongoing battle against chronic weaknesses affecting its economy.

“There are many aspects of benefits from AI data centers, and the obvious one will be helping Thai people improve their skills in many areas, especially their language skills,” he said. For example, the tourism sector is a big contributor to the economy, and AI tools can help ease language barriers, often blamed for low productivity in the sector.

By hosting facilities and experts from global tech giants, the Thai government also hopes to significantly improve technological literacy among its population, make small- and medium-sized enterprises more adaptable to advanced technologies, and utilize AI technology to address social issues such as those related to the fast-aging population.

“The current government is very, very positive on welcoming international technology companies to invest in Thailand,” he said of the new prime minister, sworn in recently, at a time when political instability in the country has often been cited as a source of concern among foreign investors.

“The current government is very supportive of international technology companies investing in Thailand,” he said.

Please email editors@mlex.com to contact the editorial staff regarding this story, or to submit the names of lawyers and advisers.

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