Small and Medium Enterprises (SMEs) should embrace artificial intelligence (AI) to enhance efficiency and help drive Thailand’s economic growth, experts said on Friday.
They pointed out that SMEs make up over 3.2 million businesses in Thailand, representing 90% of all businesses and employing half of the country’s workforce.
Nevertheless, these businesses are navigating both internal and external hurdles, concentrating their efforts on survival and sustained growth.
Praphan Charoenprawat, manager of Live Exchange, identified three significant challenges for SMEs: rapid digital transformation, shifts in consumer behavior, and limited access to funding.
Ubonrat Khamphaeng, assistant managing director of the SME Development Bank, noted the lack of business management knowledge and cost-reduction tools among SMEs, which hampers their growth potential.
Akkarapol Sukta, vice president of the Institute of Information and Communication Technology for Industries, observed that digital transformation efforts are hindered by generational disputes within family-owned companies.
He detailed how older executives often block technological adoption, preventing younger family members from modernizing business practices.
Despite these obstacles, Vorapoj Prasanpanich, assistant director of the Office of SMEs Promotion, remarked that SMEs are capable of adapting to digital changes while continuing their business operations.
He highlighted that the Covid-19 pandemic led 80-90% of SMEs toward digital transformation, yet many still lack awareness about AI, its costs, and associated risks.
Vorapoj emphasized the necessity for SMEs to adopt AI to stay abreast of global trends and urged government support in promoting and facilitating AI adoption.
Wichian Premchaiswadi, vice chairman of the Digital Council of Thailand, believes AI can significantly enhance SME efficiency in marketing and customer response.
He warned, “If people aren’t aware of how to use AI, they will face difficulties in their business and career,” he said. “If we delay responding to the AI transition, we could lose opportunities.”
AI’s Role in Boosting the Economy
During a group interview, Microsoft Thailand confirmed AI’s potential to boost efficiency across various industries, significantly benefiting the economy.
In the tourism sector, AI could translate more than 100 languages to improve communication and create a digital twin of Wat Phra Kaew in the Phra Nakhon district, enhancing the visitor experience.
“Leading countries are accelerating AI adoption, so why shouldn’t we?” questioned Dhanawat Suthumpun, the company’s managing director.
He argued that AI proficiency could determine business survival, noting that while AI can support many industries, sectors like healthcare still require human professionals.
Dhanawat also suggested that SMEs could enhance their operations using free AI tools, estimating that broader AI adoption could increase Thailand’s GDP by 2%.
He concluded by stating that a shift in mindset is essential for discovering new business models, strategies, and products.
