In 2025, Thailand’s digital economy is projected to grow by 7.3%, reaching USD 144.4 billion, significantly outpacing the country’s overall GDP growth rate of 2.8%. This expansion reflects Thailand’s ongoing digital transformation, where digital technologies are reshaping both the economy and society. There is strong reason to believe that this momentum will continue, with digital investments also expected to grow by 9.9% in 2025.
Innovation plays a crucial role in driving Thailand’s digital transformation, taking place across both technological and business model fronts. In terms of technology innovation, artificial intelligence (AI) is recognised as one of the key transformative forces shaping Thailand’s future. To harness AI’s potential, the Thai government has launched the National AI Strategy and Action Plan (2022–2027), aimed at strengthening the country’s competitiveness in the digital economy. On the business model side, the continued adoption and use of digital platforms remain a defining characteristic of Thailand’s digital economy. For instance, over half of the population now regularly uses e-commerce platforms, highlighting the deep integration of digital services into everyday life.
However, to keep pace with emerging technologies, there is a growing need to complement these innovations with responsive and forward-looking policy developments. Crafting regulations and frameworks that meet Thailand’s specific needs while anticipating future technological and business model trends is essential for sustainable growth.
Recognising this need, the Tech for Good Institute, in partnership with the Office of the National Higher Education Science Research and Innovation Policy Council, conducted a research sharing session entitled “Evolution of Tech Governance: Forward-Looking Policies for Thailand’s Digital Economy”. This event aimed to explore key trends and developments in technology policy in Thailand, with a particular focus on considerations for policy innovation approaches.
Speakers:
- Sak Segkhoonthod, Senior Advisor, Electronic Transactions Development Agency (ETDA)
- Kasama Kongsmak, Executive Vice President, Digital Economy Promotion Agency (DEPA)
- Saliltorn Thongmeensuk, Senior Research Fellow, Thailand Development Research Institute (TDRI)
- Jirawat Poomsrikaew, Executive Director, Thai Digital Platform Trade Association
Key Takeaways:
1. International best practices matter, but local context is just as important for Thailand’s digital future.
In crafting forward-looking policies, speakers highlighted the importance of understanding the local context. Thailand’s digital ecosystem, for example, is characterised by a vibrant startup sector, a large base of micro, small and medium-sized enterprises (MSMEs), and strong government investments in digital connectivity. These characteristics should inform how the governance of emerging technologies is approached. In the field of AI, there are ongoing discussions on establishing comprehensive regulations. Speakers noted that two draft proposals have been introduced for consultation, containing key provisions drawn from international best practices. One draft, for instance, is inspired by the European Union’s approach to AI regulation, particularly its emphasis on a risk-based framework for the development and deployment of AI. Speakers also highlighted continuing efforts to develop a domestic large language model (LLM) tailored to Thailand’s specific needs, as an alternative to relying solely on foreign models. While this area remains a work in progress, they emphasised the importance of crafting fit-for-purpose approaches to technology governance. International best practices are important reference points, but there is no one-size-fits-all solution, especially when it comes to the governance of emerging technologies. What has worked in other countries may not necessarily be appropriate for Thailand. As such, greater alignment across sectors and industries is essential to ensure that future legislation reflects the country’s key priorities and specific context. Importantly speakers highlighted the shared responsibility among government, industry, and civil society to co-create regulation that unlock innovation, promote adoption, and protect the public.
2. Balancing regulation with practical and reasonable compliance is essential for the continued development of the digital economy.
As Thailand’s digital economy matures, the need to ensure that safeguards are in place across digital platforms and technology companies becomes increasingly important. However, innovation in technology must be matched by innovation in regulation. During the discussion, speakers pointed out that there may not be a perfect answer yet on how to find the right balance between encouraging innovation and safeguarding public interests. However, rather than focusing solely on the substance of specific regulations at the onset, it is also crucial to focus on the regulatory process itself. Speakers stressed that clear, coherent, and predictable regulation are essential, not only for business confidence but also for regional alignment. They also called for a collaborative, transparent and iterative approach to policymaking. This can help ensure that regulations are both effective, practical and responsive to Thailand’s needs. As for the private sector, there was a clear point on how businesses are not opposed to crafting guardrails with the government agencies. Instead, companies stand ready to co-create regulations. One of the key considerations, however, is to ensure that compliance requirements will not become unnecessarily burdensome. Overregulation risks stifling the very innovation that drives Thailand’s digital economy forward.
Furthermore, the speakers noted that clear and predictable rules are essential not only for domestic business confidence but also for regional alignment. As Thailand continues to position itself as a leading digital hub in ASEAN, regulatory clarity will be paramount. A balanced approach is needed – one that requires safeguards and accountability from technology players, but that also ensures compliance remains practical and achievable, which would then support ongoing digital growth.
3. Forward-looking policies will require policy innovation.
Given the pace of technological and business model innovations, regulatory frameworks must be designed to be adaptive and responsive to constant change. There are notable initiatives such as the formation of the National AI Committee to boost the competitiveness of Thailand as an AI hub. Speakers, however, noted that it is important to continue testing governance approaches. Artificial intelligence and digital platforms, for example, are just two of the innovations that are rapidly reshaping Thailand’s economy. The danger lies in allowing regulations to become obsolete if policy innovation does not keep pace. To remain effective, speakers emphasised the importance of embedding adaptive mechanisms such as sunset clauses and regulatory sandboxes. Sunset clauses, in particular, serve as a tool for automatic expiry, forcing periodic reviews of laws to ensure they remain relevant and up to date. In addition, regulatory sandboxes were highlighted as a crucial approach, allowing not only new technologies but also new policy models to be tested in a controlled environment. Such sandboxes would enable governments to trial regulations, ensuring the right balance between safeguarding public interests and supporting innovation, especially in areas such as consumer protection and the promotion of fair competition.
Another key point for developing forward-looking policies is the need for a shift in mindset, not only within government but across the entire innovation ecosystem. Technology is redefining the roles of governments, society, and the economy. While there are long-established methods of regulation, the fast-paced digital reality demands a fundamental change in perspective with respect to governance approaches. The aim must be to craft flexible and future-proof policies that remain neutral to specific technological advancements. Speakers stressed the importance of critical thinking, strategic thinking, and creative thinking in shaping a regulatory path that enables Thailand’s digital economy to continue to develop. These all fall under the umbrella of human capital development, where Thailand should incest in digital competencies, including AI literacy, to ensure inclusive and resilient transformation.
