Thailand is backing “small AI”—affordable, focused tools that use less data and computing power—as a practical way to boost productivity and competitiveness, especially for businesses that cannot afford large AI systems.

To help businesses get started, the Federation of Thai Industries and the Office of Small and Medium Enterprises Promotion launched an 85-million-baht Smart AI for SMEs programme, aiming to equip and train 3,000 businesses in areas such as accounting, sales, manufacturing and planning; the government approved the budget in August, with funding expected to be disbursed later in the year.

The Commerce Ministry is encouraging small and medium-sized businesses in agriculture, tourism and manufacturing to use AI for market analysis, demand forecasting, order management and communication with international customers, following heightened policy attention to AI at the IMF–World Bank Group Annual Meetings in Bangkok.

AI Entrepreneur Association of Thailand president Chanwit Boonchuay urged firms to start with one measurable business problem, run a 60–90-day trial and track outcomes such as processing time, defects, energy use or customer response; he highlighted manufacturing and healthcare, as well as tourism, retail and agriculture, as promising sectors.

There are already examples of practical gains: retailer Dohome says its chatbot has cut contact-centre workload by up to 70%, while AI-based demand forecasting has helped reduce excess inventory; it is also training store staff and has held an internal hackathon to develop workflow and branch-level solutions.

In digital finance, the Thai Bankers’ Association says AI could help small traders and vendors organize financial information to demonstrate creditworthiness and improve loan access, alongside measures including the Finance Ministry’s Ari Score credit-scoring initiative, a data exchange bureau, AI prompt lists and protections against cyber risks.

The World Bank is advocating locally adapted AI that can run on everyday devices, which could help address gaps in internet access and digital skills; World Bank president Ajay Banga cited Thai tourism as one area where AI could support employment and broader economic growth.

But adoption takes more than buying a tool: businesses must invest in data preparation, integration, output checks and maintenance, while SMEs also need reliable Thai-language and industry-specific testing, accessible support beyond Bangkok, clear data-accountability rules and practical privacy and security guidance.

The productivity opportunity comes with real employment risks: an analysis cited by the Thailand Development Research Institute found that the share of online job ads mentioning AI skills rose 3.9-fold between the second quarters of 2024 and 2026, and the institute estimates 2.2 million Thai workers could face displacement, including people in clerical, data-entry, accounting, translation, marketing and creative roles.

Speakers said AI may replace routine tasks and sometimes jobs, even as it helps address labour shortages and raise output, and called for early staff training, redesigned roles, paid retraining, apprenticeships and income support, with policymakers tracking job quality and earnings as well as productivity.

As routine work is automated, employers increasingly want people who pair subject-matter expertise with practical AI skills—using data, handling tools responsibly, evaluating their outputs and protecting confidential information—alongside analytical thinking, creativity, communication, judgement and problem-solving.