Government’s controversial AI scheme raises eyebrows

A 1.6-billion-baht government project that would offer 5 million Thais free access to premium artificial intelligence (AI) tools has sparked intense public debate over propriety of the expenditure as well as questionable practices in handing out contracts.

Amid fears of misuse of funds, critics of the project believe users might receive access only to some basic AI versions that are already available for free online, contrary to the claim of Digital Economy and Society (DES) Minister Chaichanok Chidchob who has promised a “pro” version of an AI tool.

The DES ministry has said it aims to create a “gateway” or “passport” to unlock equal access for Thai people to harness the power of world-class AI, bridging the digital divide.

Questions raised over funding

People’s Party member of Parliament Pawoot Pongvitayapanu has flagged the budget allocation for the project. The opposition party-list MP disclosed during a parliamentary session on May 28 that the TH-AI Passport project is being operated under the “Digital Economy and Society Development Fund”.

This specific fund receives an annual allocation of 2 billion baht from the National Broadcasting and Telecommunications Commission.

Data shows that each year, the fund holds a left-over balance of roughly 1.5 billion to 1.6 billion baht. Crucially, the budget from this fund is classified as off-budget, bypassing the standard requirement for Cabinet approval.

Pawoot argued that officials from the Office of the National Digital Economy and Society Commission (ONDE)—the agency owning the project—had previously told a House committee that the target group of 5 million people was calculated simply by dividing the balance money in the fund by an estimated average budget of 300 baht per head.

“It turns out that this project was not conceived taking into account the actual needs of Thailand at all,” Pawoot pointed out.

He emphasized that the 1.6-billion-baht price tag represents a “historically high” budget for a DES Ministry project.

He also noted that the ONDE overlapped executives with the Digital Development Fund itself, questioning if the arrangement constituted an abuse of authority.

Why this project is important

In response, Chaichanok defended his ministry’s project by outlining the “importance” and “necessity” of AI in boosting national productivity, particularly as Thailand transitions into an aging society.

He stated that increasing the AI adoption rate is “important, necessary, and urgent”, which justified utilizing the Digital Development Fund.

According to Chaichanok, when the Anutin-1 government assumed office on October 1, 2025, they had already missed the cycle for the annual national budget. Therefore, an alternative funding source was required to prevent Thailand from falling behind amid a shrinking workforce. The spending aligns with the objectives of the fund and complies with the Digital Development for Economy and Society Act, BE 2560 (2017), he assures.

Regarding the user quota, Chaichanok claimed he was unaware of the agency’s mathematical breakdown but argued that targeting 5 million accounts would push Thai people’s AI usage rate above the global benchmark.

“The project isn’t just about giving out free AI pro versions. The policy I have handed down to the agency focuses on developing the country’s AI adoption, AI literacy, and the overall AI ecosystem,” the minister explained.

He said that the initiative included designing training courses for the public to learn prompting skills.

The ministry plans to offer 12 AI models to help address weaknesses after studies showed Thailand’s AI access rate stands at 10.7 per cent, lower than ASEAN neighbors like Vietnam and Singapore, and below the global average of 16.3 per cent.

The TH-AI Passport project aims to boost Thailand’s access rate to approximately 23 per cent, costing an average of 324 baht per person per year, or roughly 27 baht per month.

Questions raised over procurement process

Pawoot highlighted what he described as suspicious “coincidences” in the procurement process. He noted that the timeframe between the bid announcement and the proposal deadline was just 34 days—an incredibly short window for a project of this scale.

Furthermore, the opposition MP stated that the consortium bidding for the project consisted of the same companies that had set the initial reference price. The winning group ultimately secured the contract with a bid that was only about 1.5 per cent lower than the reference price.

Pawoot claimed that the three companies involved belonged to the same corporate group that had previously won large-scale digital contracts under the Ministry of Higher Education, Science, Research and Innovation and the Ministry of Education, alongside the MotoGP racing event contract in Buriram province.

He asked whether these companies had secured the contracts through political connections to ministries managed by the ruling Bhumjaithai Party.

Addressing these allegations, Chaichanok said that he acts merely as a “policy maker” who evaluates whether projects align with government agendas and budgets. He asserted that the procurement details and terms of reference fall outside his scope of responsibility, though relevant agencies remain ready for any formal fact-finding process.

“Who gets the project or wins the job is not the point, nor is it my business,” Chaichanok said.

The minister countered criticism of the short timeline in handing out the contracts, stating that the process actually took five months and included public hearings alongside legal electronic bidding (e-bidding).

Providing further clarification, DES Ministry permanent secretary Patchara Anuntasilpa said that the procurement procedure started in November 2025 and proceeded until the contract was signed on April 7, 2026.

He noted that three consortiums had participated, and the winner was the “TH Joint Venture”, which proposed a price of 1.621 billion baht—roughly 1.76 per cent lower than the reference price.

Misuse of off-budget funds

The chairman of the Anti-Corruption Organization of Thailand, Mana Nimitmongkol, expressed deep concern over transparency, noting that off-budget funds only require approval from internal management teams rather than the Cabinet.

“We all know very well that influential politicians often send their cronies to sit in such fund management teams,” Mana stated.

He pointed out that there were 114 off-budget funds operating across government departments, controlling combined assets estimated at 4.5 trillion baht.

Mana rejected the minister’s defense, stating, “Policy makers must be held accountable should off-budget funds be abused. You cannot just say you are policy makers and do not look at the details of procurement.”

The chairman of the executive committee at ACIS Professional Center and Cybertron Company Limited, Prinya Hom-Anek, warned that the political stakes would be high for the government if it failed to adjust the scheme to meet public expectations.

Prinya suggested that the government adapt features from existing co-payment models, where consumers match government funding—referencing the current consumption scheme where the state subsidized 60 per cent of transactions within a 4,000-baht limit.

He also pointed to Singapore’s model, where AI subscriptions were granted only to citizens who completed specific training programs.

Given the 1.6-billion-baht budget for 5 million users, Prinya doubted the tool could be a true “pro” version due to the unsustainably low per-user cost.

“I think it could be between a pro version and a free version of an AI tool, but we have to wait and see the final outcome,” Prinya said.