Thailand Urged to Adopt AI for Economic Growth
Microsoft Thailand emphasizes the urgent need for artificial intelligence adoption among SMEs to enhance productivity and GDP amid global trade challenges.
In a recent statement, executives from Microsoft Thailand have highlighted the imperative for the nation to urgently adopt artificial intelligence (AI) technology to elevate the country to an "AI-first" status.
Dhanawat Suthumpun, managing director of Microsoft Thailand, noted that AI could significantly aid small and medium-sized enterprises (SMEs) in increasing productivity, thereby stimulating GDP growth during a time of ongoing global trade challenges.
The AI Maturity Matrix, a study by the Boston Consulting Group assessing AI economic development across 73 countries, has positioned Thailand among the 20 nations categorized as "gradual practitioners" in AI adoption.
In contrast, only 10% of countries are recognized as leading AI pioneers, including Canada, China, Singapore, the United Kingdom, and the United States.
Malaysia is classified as a "steady contender," while Vietnam is considered a "rising contender" in the AI domain.
Mr. Dhanawat emphasized during the Microsoft SMEs AI Skills Summit that timely adoption of AI is crucial, warning that failure to act swiftly could result in Thailand missing key opportunities to competitors.
He referenced the proactive measures taken by regional counterparts, such as Singapore's investment of S$150 million (approximately 3.79 billion baht) to incentivize AI adoption by SMEs through funding support equating to 50% of their investment.
Furthermore, Malaysia's establishment of an AI centre of excellence was cited as an example of regional initiatives aimed at bolstering AI capabilities.
The disparity between nations adopting AI at a rapid pace and those lagging behind is projected to widen, as technology continues to advance.
Microsoft is reportedly in discussions with local government agencies to create an AI centre of excellence, envisioned as a resource for technology and innovation in sectors such as agriculture, tourism, and healthcare.
This initiative aims to facilitate easier access to AI for SMEs and optimize their operations to tackle various national issues, including GDP growth, the challenges posed by an aging population, and educational improvements.
Mr. Dhanawat highlighted that the integration of agentic AI could streamline tasks typically handled by human workers, thereby boosting productivity levels.
He pointed to data indicating a teacher-to-student ratio of 1:50 in Thailand, suggesting that AI could assist in personalized learning and reduce the burden on educators.
According to a global survey by IDC, 75% of business leaders have implemented generative AI, with expectations that investment in this technology could yield a return on investment (ROI) of 3.7 times.
Companies that lead in AI adoption may realize an ROI as high as 10 times.
To address the skills gap in AI, Microsoft has pledged to train 1 million individuals in Thailand, initiating investments exceeding US$1 million to localize its AI learning platform encompassing over 200 courses.
Currently, approximately 3.5 million SMEs in Thailand contribute to 35% of the nation's GDP. By leveraging AI to enhance productivity, Mr. Dhanawat posited that an increase of more than two percentage points in GDP growth could potentially elevate the overall growth rate to 10%.
Wichian Premchaiswadi, vice-chairman of the Digital Council of Thailand, advocated for the establishment of an "AI agent library" tailored for specific industries, designed to showcase practical use cases that could yield ROI for SMEs.
Successful applications of AI could enable easier access to financing from banks, according to Mr. Wichian.
Akkarapol Sukta, vice-chairman of the Institute of Information and Communication Technology for Industry at the Federation of Thai Industries, reported that around 6,000 factories have ceased operations this year, underscoring the need for comprehensive education among SMEs about the significance of technology adoption, with calls for incentives to support AI integration.
Ubonrat Khaphaeng, assistant managing director for corporate communications and sustainable development at the Small and Medium Enterprise Development Bank of Thailand, revealed that a fund of 30 billion baht has been allocated under a loan campaign aimed at improving SME businesses.
Vorapoj Prasanpanich, assistant director at the Office of Small and Medium Enterprises Promotion, stated that approximately 100,000 SMEs managed to enhance their business performance in 2023. He noted the importance of multilayered skill improvements and expert guidance to assist SMEs in their AI transformation journeys.
Dhanawat Suthumpun, managing director of Microsoft Thailand, noted that AI could significantly aid small and medium-sized enterprises (SMEs) in increasing productivity, thereby stimulating GDP growth during a time of ongoing global trade challenges.
The AI Maturity Matrix, a study by the Boston Consulting Group assessing AI economic development across 73 countries, has positioned Thailand among the 20 nations categorized as "gradual practitioners" in AI adoption.
In contrast, only 10% of countries are recognized as leading AI pioneers, including Canada, China, Singapore, the United Kingdom, and the United States.
Malaysia is classified as a "steady contender," while Vietnam is considered a "rising contender" in the AI domain.
Mr. Dhanawat emphasized during the Microsoft SMEs AI Skills Summit that timely adoption of AI is crucial, warning that failure to act swiftly could result in Thailand missing key opportunities to competitors.
He referenced the proactive measures taken by regional counterparts, such as Singapore's investment of S$150 million (approximately 3.79 billion baht) to incentivize AI adoption by SMEs through funding support equating to 50% of their investment.
Furthermore, Malaysia's establishment of an AI centre of excellence was cited as an example of regional initiatives aimed at bolstering AI capabilities.
The disparity between nations adopting AI at a rapid pace and those lagging behind is projected to widen, as technology continues to advance.
Microsoft is reportedly in discussions with local government agencies to create an AI centre of excellence, envisioned as a resource for technology and innovation in sectors such as agriculture, tourism, and healthcare.
This initiative aims to facilitate easier access to AI for SMEs and optimize their operations to tackle various national issues, including GDP growth, the challenges posed by an aging population, and educational improvements.
Mr. Dhanawat highlighted that the integration of agentic AI could streamline tasks typically handled by human workers, thereby boosting productivity levels.
He pointed to data indicating a teacher-to-student ratio of 1:50 in Thailand, suggesting that AI could assist in personalized learning and reduce the burden on educators.
According to a global survey by IDC, 75% of business leaders have implemented generative AI, with expectations that investment in this technology could yield a return on investment (ROI) of 3.7 times.
Companies that lead in AI adoption may realize an ROI as high as 10 times.
To address the skills gap in AI, Microsoft has pledged to train 1 million individuals in Thailand, initiating investments exceeding US$1 million to localize its AI learning platform encompassing over 200 courses.
Currently, approximately 3.5 million SMEs in Thailand contribute to 35% of the nation's GDP. By leveraging AI to enhance productivity, Mr. Dhanawat posited that an increase of more than two percentage points in GDP growth could potentially elevate the overall growth rate to 10%.
Wichian Premchaiswadi, vice-chairman of the Digital Council of Thailand, advocated for the establishment of an "AI agent library" tailored for specific industries, designed to showcase practical use cases that could yield ROI for SMEs.
Successful applications of AI could enable easier access to financing from banks, according to Mr. Wichian.
Akkarapol Sukta, vice-chairman of the Institute of Information and Communication Technology for Industry at the Federation of Thai Industries, reported that around 6,000 factories have ceased operations this year, underscoring the need for comprehensive education among SMEs about the significance of technology adoption, with calls for incentives to support AI integration.
Ubonrat Khaphaeng, assistant managing director for corporate communications and sustainable development at the Small and Medium Enterprise Development Bank of Thailand, revealed that a fund of 30 billion baht has been allocated under a loan campaign aimed at improving SME businesses.
Vorapoj Prasanpanich, assistant director at the Office of Small and Medium Enterprises Promotion, stated that approximately 100,000 SMEs managed to enhance their business performance in 2023. He noted the importance of multilayered skill improvements and expert guidance to assist SMEs in their AI transformation journeys.
