Analysis & Opinion | By Giostanovlatto | December 5, 2025
Bali’s adoption of AI is accelerating, but the rules governing it haven’t caught up. While the island enforces detailed regulations around culture, land use, environmental protection, and animal welfare, AI in Bali operates in a near-total vacuum. The result is a digital landscape where innovation grows fast but oversight barely exists.
What Bali Regulates—And What It Doesn’t
Bali is meticulous when protecting what it values: temple zones, coastal setbacks, environmental waste rules, foreign-owned business structures, and even how sacred monkeys are managed.
But for Bali AI, there are almost no guardrails:
• No standards for AI security or authentication
• No data protection protocol for passport scans or guest IDs
• No mandate for fraud-detection systems
• No clear liability when AI-generated scams deceive travelers
Everything—from how a villa chatbot handles your data to how payment links are shared—is left to individual ethics.
The Accountability Black Hole
This regulatory gap creates unresolved questions:
Who is responsible when Bali AI scams succeed?
Is it the villa owner who used unsecured tools?
The booking platform that failed to detect fake listings?
The payment gateway?
Right now, the answer is simple and troubling: the victim absorbs the loss.
Should Bali develop its own AI standards?
Europe already has the EU AI Act. Tech-forward regions are developing sector-based AI rules. Bali, as a global tourism hub, may need its own hospitality-focused AI guidelines instead of waiting for national regulation that evolves slowly.
Where does AI fit within Balinese values?
Local academics argue AI should be guided by Tri Hita Karana—technology that creates harmony, not harm. But this remains a philosophical aspiration, not enforceable policy.
The Temporary Safety Net
With no Bali AI regulation, protection relies on three fragile pillars:
• Tourist vigilance
• Ethical choices of local businesses
• Platforms reacting only after fraud occurs
This is not a sustainable model for an island that depends heavily on trust and seamless digital interactions.
Why Regulation Matters Now
Regulation isn’t about slowing down AI; it’s about building the guardrails that allow Bali AI to grow safely. Without clear rules on data security, identity verification, platform accountability, and AI ethics, the risks fall disproportionately on travelers—the group least prepared to absorb them.
Until Bali creates standardized protections, every digital interaction carries an invisible risk premium. The island needs a framework that protects visitors, empowers businesses, and aligns with Bali’s values—so AI becomes a tool for harmony instead of a weapon for exploitation.
