Only 18% of respondents in Thailand have adopted artificial intelligence (AI), while 73% are still considering it, citing data quality as a hurdle, according to a recent survey.
The Thai AI market is projected to reach 130 billion baht by 2030, growing at a compound annual growth rate of 18% from 48 billion in 2024, according to a white paper by the Thailand Development Research Institute (TDRI) in collaboration with the Electronic Transactions Development Agency (ETDA) and SAP, a market leader in enterprise software.
"AI technologies can drive this transformation by enhancing productivity, fostering innovation and enabling the development of smart factories, as well as helping to boost Thailand's carbon neutrality goals," said Saliltorn Thongmeensuk, senior research fellow at the TDRI.
With global AI in manufacturing projected to surge from US$5.94 billion in 2024 to more than $230 billion by 2034, Thailand is positioning itself to ride this wave of innovation.
Adoption of AI is set to expand rapidly for manufacturing companies in Thailand.
Despite just 18% of Thailand's wider business ecosystem adopting AI based on the ETDA survey of 580 respondents in 2024, the manufacturing sector is expected to see a rise in AI adoption of up to 15% by 2030.
AI is expected to enhance demand forecasting to improve service levels by 65%, improve productivity by 20% through AI-enhanced industrial automation, reduce machine downtime by 53% through predictive maintenance and reduce unsafe workplace behaviours by 90%.
While 73% of Thai organisations are still considering adopting AI, several challenges persist. In particular, data represents a key hurdle for AI success in Thai manufacturing.
Roughly 65% of manufacturing organisations cite data quality concerns as a significant barrier, with a similar figure of Thai manufacturers noting inadequate infrastructure is affecting their AI adoption.
The white paper identifies key use cases -- ranging from predictive maintenance and visual inspection to AI-enhanced robotics and logistics optimisation -- that could significantly boost productivity and reduce operational costs.
Leading Thai firms, like Toyota Motor Thailand and Siam Cement Group, are already leveraging AI for predictive diagnostics and digital-twin simulations, setting benchmarks for the industry.
However, challenges in AI adoption persist, including fragmented data systems, high implementation costs and workforce readiness.
To address these, the report recommends a phased corporate strategy encompassing organisational redesign, data governance and skill development. It also emphasises the importance of responsible AI, advocating for governance councils, risk assessments and adherence to ethical frameworks.
The TDRI calls for the establishment of national AI governance bodies, regulatory sandboxes and AI testing facilities to ensure safe and scalable deployment.
It also urges the expansion of tax incentives to cover AI R&D and workforce upskilling, reinforcing Thailand's ambition to become a regional AI leader.
According to Kulwipa Piyawattanametha, managing director of SAP Thailand, at present more than 34,000 customers use a SAP Business AI solution, including thousands across Asia.
They benefit from embedding advanced AI capabilities to optimise business operations through real-time data analysis, automated decision-making, improved forecasting and enhanced productivity.
Wolfgang Dierker, head of global government affairs and CSR at SAP, said generative AI alone could add between $2.6 and $4.4 trillion in value annually to the global economy.
However, while AI presents immense opportunities, it also brings challenges that require ethical and responsible implementation.
SAP emphasises the importance of human-centric AI, highlighting its potential to reshape economic structures and business operations, he added.