Bangkok Post – Thailand stands on precipice of major AI boom

The availability of small language models (SLMs) and open-source AI models, as well as a greater number of skilled workers, are expected to make generative artificial intelligence (GenAI) more accessible to organisations.

Data intelligence platform Statista estimated that the Thai GenAI market is projected to reach US$180 million in 2024, with annual growth of 46.5% from 2024-2030, resulting in a market volume of $1.77 billion by 2030.

According to the Digital Economy Promotion Agency’s Thailand Digital Technology Foresight 2035 report, by 2030 Thailand’s AI market size is expected to be 114 billion baht.

GenAI is a type of AI technology that can generate various types of content, ranging from text, imagery, audio and synthetic data.

OPEN-SOURCE MODELS

Juhi McClelland, managing partner for IBM Consulting in Asia-Pacific, said that while general-purpose large language models (LLMs) have their advantages, this one-size-fits-all approach is not the best AI solution for every company, particularly those in specialised industries.

SLMs can help to reduce computing costs compared with LLMs, she said.

LLMs refer to models trained on immense amounts of data, making them capable of understanding and generating natural language and other types of content to perform a wide range of tasks.

Ms McClelland said scaling GenAI will require businesses to choose the right models for each use case, considering not just AI performance but also cost efficiency and trust.

Anothai Wettayakorn, country general manager at IBM Thailand, said the larger the model, the more computational resources are needed, leading to delays, higher costs, increased energy consumption, and a greater environmental impact.

As a result, many organisations are now exploring smaller, more efficient models that are customisable, reliable, and trained on business-specific data. These models address the unique needs and requirements of each organisation without incurring additional costs.

Ms McClelland said there are four key factors which will drive AI adoption in Thailand: open-source AI models which are gaining momentum due to their transparency, flexibility, cost efficiency, and customisation options.

These models reduce vendor lock-in, foster community-driven innovation, and support trustworthy AI strategies, Ms McClelland said.

The AI ecosystem integrations will drive the success of open-source AI models in 2025. Application platforms must seamlessly integrate with various models to ensure greater interoperability and adaptability to new AI developments, she said.

Mr Anothai said IBM will accelerate organisations’ adoption of GenAI by promoting four critical factors, including the open-source AI models.

He estimates 5-6% of organisations in Thailand this year adopted GenAI. IBM wants to help increase adoption to 15-20% next year to improve Thai competitiveness.

MORE SKILLED WORKFORCE

Vatsun Thirapatarapong, country manager of Amazon Web Services (AWS) Thailand, said GenAI is still relatively new and many projects in 2024 have been exploratory proof-of-concepts.

Organisations are using these early projects to learn best practices, assess value, and build experience before scaling to full production, he added. While a proof-of-concept approach may limit larger-scale deployments in 2025, the enthusiasm and openness to experimentation lay the groundwork for greater innovation in the future, he said.

“Underpinning the technology are the skills required to make innovation happen. This continues to be a bottleneck in GenAI adoption,” he said.

AWS aims to provide AI training to 100,000 people in Thailand by 2026 in order to meet employer demand for AI talent.

Mr Vatsun said government initiatives like the cloud-first strategy and prioritising Thailand as a digital economy hub are driving demand for cloud and GenAI across industries.

GenAI’s potential to enhance productivity through automation makes it an attractive solution for businesses seeking operational efficiency by reducing repetitive tasks.

For example, AI-powered tools can help developers complete tasks 57% faster.

Additionally, GenAI enables innovative applications, products, and services, helping companies differentiate and gain a competitive edge.

Key areas for GenAI adoption include banking/financial services, healthcare, and manufacturing/supply chains.

“As Thai talent gains more training in AI skills and organisations grow their experience, deployment and innovation will accelerate,” Mr Vatsun said.

Dhanawat Suthumpun, managing director of Microsoft Thailand, said that to accelerate the adoption of GenAI, the government should define policy guidelines for both public and private sectors and set best practices.

Providing incentives to encourage the private sector and academia to leverage AI will boost productivity, efficiency, and innovation, said Mr Dhanawat.

“The significant investment in AI skills development is essential to ensure a skilled workforce capable of driving this technological advancement,” he said.

Mr Dhanawat said that AI will foster cross-industry collaboration. Among the sectors primed for transformation by AI are government, education, public health, finance, agriculture, tourism, manufacturing, cybersecurity, and sustainability.

Patama Chantaruck, country managing director of Accenture Thailand, said Thailand is on an exciting journey with GenAI, but faces significant challenges, including unpredictable costs, security risks, and AI hallucinations — where AI generates convincing yet incorrect outputs — which hinder full-scale adoption.

Gartner’s research shows GenAI cost estimates can be inaccurate by 500-1,000%, making it hard for businesses to justify big investments without clear returns, she added.

“For GenAI to succeed, companies need to go beyond just proving its concept and focus on demonstrating its real value. This means prioritising productivity improvements, considering all potential benefits, closely tracking AI-related costs, and monitoring expenses in real-time to avoid financial mistakes,” Ms Patama said.

“In 2025, we’re seeing unprecedented openness to GenAI across Thailand’s sectors. Industries like banking, life sciences, communications, media, and software are actively exploring AI-driven transformation.”

In 2024, businesses began moving from AI ambition to AI action, linking technology directly to business value and return on investment (ROI), said Ms McClelland.

“Looking towards 2025, the focus will shift from experimentation to real business outcomes, with organisations deploying AI at scale for substantial ROI,” she said.

Mr Anothai estimates that 5-6% of organisations in Thailand this year adopted GenAI.

FUTURE OF AI

Jensen Huang, founder and chief executive of global AI chip maker Nvidia, said during his recent visit to Thailand that the first generation of AI is digital and information-based, like chatbots.

The second generation combines AI with robotics, creating self-driving cars and robots used in agriculture and other industries.

The future will see robots that are integrated into human workspaces, enhancing productivity and transforming industries, he added.

“The future of AI in Thailand requires three critical steps for its development, including the establishment of AI infrastructure which can produce intelligence and transform the industries,” said Mr Huang.