AI ambitions face race against time

Thailand's artificial intelligence (AI) strategy is heading in the right direction, but the country might run out of time before it can turn policies into real economic power, say digital industry leaders.

The nation must accelerate execution, widening AI access for small and medium-sized enterprises (SMEs) and building a national data infrastructure if AI is to become the country's next economic engine, said executives.

Without faster action, Thailand risks falling behind in the global AI economy, remaining merely a consumer of foreign technology.

"We must accept the reality that Thailand is not in a position to compete in building infrastructure against superpowers like the US or China," Voranuch Dejakaisaya, executive chairman of Kasikorn Business-Technology Group, told the Bangkok Post.

"Instead, the strategic position where we can win and create a competitive advantage is by becoming a 'super integrator' -- fully applying and integrating AI software to drive our business core."

The government is taking the right steps, covering about 50% of the strategy, particularly by establishing a collaborative system between educational institutions and big tech to cultivate ready-to-work talent, she noted.

"However, the gap we must bridge by 2027 is speed and the digital divide for SMEs, reducing the concentration of technological capability that is currently confined to large corporations," Ms Voranuch said.

Every organisation must develop a generative AI usage policy immediately, she added.

"As Thailand enters the next phase of the AI race, the focus must shift towards building sustainable domestic capability. True economic competitiveness will come from moving beyond technology consumption to developing our own local AI systems," said Keng Teik Koay, group chief executive of Amity, a Bangkok-based AI startup.

"We need to focus on foundational infrastructure rather than just application layers. The missing pieces are domestic compute capacity, localised datasets tailored to the Thai language and context, and secure data-sharing frameworks between public and private sectors."

Sustainability comes from owning our data pipelines and infrastructure, not just renting access to foreign platforms, he said.

The industry priority should be closing the technical talent gap and ensuring that local businesses can practically integrate enterprise AI to drive real growth and protect workforce readiness, said Mr Keng.

"The talent gap includes a shortage of data scientists and technical professionals who know how to deploy and scale AI within an enterprise," he said.

"Subsidising tool access is temporary; we need long-term training pipelines."

Hubs that feature best practices such as Singapore accelerate this through deep public-private partnerships -- creating national AI apprenticeships and co-developing industry-aligned curriculums to build actual technology creators, not just tool users, said Mr Keng.

PHYSICAL AI

Wandee Wattanakrit, co-founder and chief executive of MUI Robotics, a deep tech sensory AI startup, said Thailand is moving in the right direction, but the next step must be more practical and industry-driven.

The National AI Strategy for 2022-2027 has the right pillars of ethics, infrastructure, talent, innovation and adoption, but over the next few years Thailand should not limit itself to competing only in generative AI or software AI, she said.

"We should focus on AI that connects with the physical world, what we call physical AI and sensory AI," said Ms Wandee.

For MUI Robotics, the future of AI can read, write, see, hear, smell, taste, monitor, and understand real-world industrial environments.

"This is highly relevant to Thailand's strengths: food, agriculture, healthcare, manufacturing and the environment," she noted.

To gain economic competitiveness, Thailand should build AI around sectors where it already has global advantages, said Ms Wandee.

The nation should also promote stronger AI adoption in industries and support deep tech startups that build proprietary technology, sensors, hardware, and industrial AI platforms, she said.

Thailand should position itself as a leader in applied AI for the real economy, Ms Wandee added.

TOO SLOW

The government is on the right track in terms of IT, but is moving too slowly on AI development, Pathom Indarodom, a committee member of the Digital Council of Thailand, told the Bangkok Post.

The administration's strategic direction is correct, but its execution is dangerously slow, threatening to leave Thailand generations behind global competitors, he noted.

While initiatives such as establishing the National AI Committee, driving AI talent development, and integrating AI into the public sector are positive steps, industry leaders are concerned over a lack of momentum, said Mr Pathom.

"Many tech forums have raised the same alarming question: where is the National AI Committee? There has not been a meeting in a very long time," he said.

"While the world is being reshaped by AI, Thailand's steering committee remains stagnant. This is deeply worrying."

The government must urgently connect all stakeholders in a unified system and accelerate support to keep pace with rapid technological shifts, said Mr Pathom.

"In the AI era, a one-year delay could result in falling behind by several years, creating a generational burden for the future," he said.

While many Thais have adopted AI tools, their usage does not equate to genuine understanding of AI, added Mr Pathom.

From Consumers to Creators

Thailand must pivot from being a consumer of AI technologies to a creator. Instead of heavy reliance on purchasing foreign AI solutions, the country should shift towards empowering home-grown developers in specialised fields, including medical AI and healthcare solutions, industrial AI for manufacturing, and Thai-language AI models, he said.

Discussions with global tech giants such as Huawei and Nvidia reveal Thailand possesses a wealth of highly capable niche AI developers who have created impressive solutions, yet their achievements remain largely out of the media spotlight, noted Mr Pathom.

Chakkrit Urairat, president of the Telecommunications Association of Thailand, said at a national level the country is on the right digital path.

However, because technology is mostly led by the private sector, government support and regulations often follow later.

The timing of state policies means sometimes rather than support, these regulations end up becoming a threat or a trade barrier, said Mr Chakkrit.

In fact, some issues do not require regulation, but should be left to "move on their own rhythms", he added.

The primary role of regulations should be to ensure a level playing field, allowing all enterprises to coexist and compete fairly without the market being dominated by major players, said Mr Chakkrit.

CONTENTIOUS ISSUE

Industry leaders have a mixed view of the benefits in the government's TH-AI Passport initiative, which has rapidly evolved from a national digital campaign into a debate on procurement and cost-benefit analysis.

The project is being spearheaded by the Digital Economy and Society Ministry.

Under the first phase of the scheme, the government plans to spend around 1.6 billion baht to procure professional and premium generative AI models for up to 5 million Thais to use for free.

However, questions surrounding procurement procedures, project scope, budget transparency and the selection of the winning bidder triggered growing scrutiny from opposition politicians, academics, industry stakeholders and civil society groups.

"I can see both sides. The project is good because it benefits the country. In terms of value or cost-effectiveness, that's another story," Mr Chakkrit said.

However, government projects should not be evaluated in terms of commercial worthiness alone when determining public benefits, he said.

"Public utilities such as electricity and water started by generating losses, but people still benefit from them," said Mr Chakkrit.

If the Thai population can access professional AI models, he said they will have a chance to test their knowledge of "pro" tools, which could upgrade their user level.

Having 5 million people in Thailand using professional AI packages would place the country at a high standard, added Mr Chakkrit.

The AI Entrepreneur Association of Thailand and technology pundits warn the project could increase short-term AI adoption while leaving Thailand more dependent on global technology providers, rather than helping to build a sustainable national AI structure.

FRESH HOPE FOR SMEs

SMEs are expected to benefit greatly from the TH-AI Passport project, according to Pimjai Leeissaranukul, chairwoman of the Federation of Thai Industries (FTI).

The initiative can help bridge the technological gap for smaller businesses that often lack the budget to invest in advanced digital tools, she said, describing the technology as a modern tool that will "link SMEs with the global market", giving them opportunities to compete internationally despite economic challenges.

However, Mrs Pimjai acknowledged the project details remain unclear.

"We are waiting for more information from the government. We don't yet know the conditions for users or how access will be divided between businesses and individuals," she said.

AI adoption could be a turning point for SMEs struggling with liquidity issues and limited access to financial resources, said Mrs Pimjai.

Many small businesses are under pressure from rising production and logistics costs, driven by global geopolitical conflicts. AI could help reduce costs, improve efficiency, and strengthen competitiveness in uncertain times, she noted.

The government should capitalise on global trends in AI, data centres and cybersecurity, said Mrs Pimjai, highlighting the importance of supporting industries such as smart electronics being developed in the Eastern Economic Corridor in parts of Chon Buri, Rayong and Chachoengsao, the state's projected high-tech industrial hub.

As the new chairwoman of the FTI, she outlined a broader vision to upgrade Thai factories through technology.

Mrs Pimjai said she plans to push for the adoption of AI, automation, robotics and data analytics to create smart factories and smart original equipment manufacturers.

Her strategy includes promoting real-time data analysis, automated quality control and integrated production systems to enhance decision-making and minimise losses.

Mrs Pimjai also intends to foster collaboration with the government and financial institutions to develop new financial tools, such as AI and automation transition loans that help entrepreneurs invest in technology and transition to smart industry practices.

Thienprasit Chaiyapatranun, president of the Thai Hotels Association, said hotel operators project AI could comprise 5-10% of their operations at present, mostly back-office tasks or management rather than services, which largely rely on humans.

While hotel sales and marketing use AI to plan their prices, operators still prefer to use services that are already embedded in solutions provided by international companies, he said.

Investing in AI by themselves is considered unnecessary by hotels as this technology requires a massive budget, said Mr Thienprasit.

A STARK WARNING

Danucha Pichayanan, secretary-general of the National Economic and Social Development Council, said Thai society faces significant challenges from the rise of AI, which has now entered the era of agentic AI.

This new generation is capable of reasoning, planning and executing tasks on behalf of humans in a fully integrated end-to-end process.

Industry observers estimate AI will affect around 8.7 million Thai workers, with about 2.2 million jobs at risk of being displaced, he said.

"A more concerning development is the global shift beyond agentic AI towards physical AI," said Mr Danucha.

"This transition will shift AI's impact from displacing information-based jobs to replacing physical and operational skills, posing direct and unavoidable risks to employment in the manufacturing, logistics and service sectors."

In response to these challenges, he said the Higher Education, Science, Research and Innovation Ministry set a target to develop 30,000 AI professionals over three years, with the objective to transform the workforce from task performers into AI managers and supervisors.

Mrs Pimjai says AI adoption could be a turning point for SMEs.

Additional report by Lamonphet Apisitniran and Narumon Kasemsuk