Bank branch closures set to hit staff more than AI

Automation impact on jobs still limited

Artificial intelligence (AI) adoption in Thailand's banking sector is unlikely to have a rapid impact on employment, with the decline in bank staff primarily driven by branch closures, according to the central bank governor.

The Bank of Thailand's governor, Vitai Ratanakorn, said during a media briefing earlier this month that the reduction in the banking workforce has mainly resulted from branch rationalisation rather than AI adoption.

"Positive growth in digital banking services in Thailand has significantly reduced transactions conducted through traditional branch networks," he said. "At the same time, local banks have increasingly adopted AI and automation technologies to improve productivity, lower operating costs, strengthen competitiveness and enhance employee skills.

"In Thailand, nevertheless, it will likely take some time before AI-driven disruption has a significant impact on employment in the banking industry."

According to Bank of Thailand data, the banking industry's workforce stood at 116,721 employees in the first quarter of 2026, down from 119,051 at the end of 2025 and 124,458 at the end of 2024.

Meanwhile, the number of bank branches nationwide has continued to decline. As of April 2026, there were 4,575 banking outlets, compared with 4,696 at the end of 2025, 4,900 at the end of 2024, and 5,082 at the end of 2023.

Kattiya Indaravijaya, chief executive of Kasikornbank, said the bank has established a workforce strategy under its K-Data and AI Strategy as part of its long-term transformation plan. Under the roadmap, the bank will continue to develop both technological capabilities and human intelligence as it advances towards becoming a data- and AI-driven organisation.

"The bank's people strategy is a long-term journey that will take time to achieve its goals step by step. Therefore, it is not expected to have a broad or immediate impact on the workforce," she said.

Separately, Piti Tantakasem, chief executive of TMBThanachart Bank (ttb), said businesses, including those in the banking sector, should prepare for AI-driven disruption over the next few years. He noted that AI could commoditise human skills, experience and intelligence.

"Business leaders need to develop a clear people vision for the next three years as AI reshapes workforce structures," Mr Piti said.

AI is expected to make organisations naturally leaner over the next three years, driving structural changes and redefining workforce requirements across industries. Mr Piti compared workforce adaptation to a "Survivor" game, where only those who embrace AI will remain competitive.

In an organisation with 100 employees, only a small number are likely to emerge as AI champions, while around 60% will gradually learn to integrate AI into their work. The remaining 40% who fail to adapt risk being left behind, as AI-enabled employees become productive enough to absorb much of the work previously carried out by others, he said.

According to the bank, ttb plans to invest 3.5 billion baht in digital and IT projects in 2026, up from 2.7 billion baht in 2025.