A recent whitepaper published by the Thailand Development Research Institute (TDRI), in collaboration with the Electronic Transactions Development Agency (ETDA) and SAP, highlights the critical role of artificial intelligence (AI) in advancing Thailand's 4.0 strategy. This initiative aims to transition the economy from traditional manufacturing to innovation-driven high-tech industries.
Despite the potential for AI to create up to 300 use cases across the manufacturing sector, the report reveals that only 2% of manufacturers in Thailand have fully transitioned to Industry 4.0 standards.
Dr. Chaichana Mitrpant, executive director at ETDA, emphasised the need for increased AI adoption to meet national objectives, stressing the importance of collaboration between private and public sectors to enhance AI governance.
A senior research fellow at TDRI, Dr. Saliltorn Thongmeensuk, pointed out that AI technologies can significantly improve productivity, foster innovation, and facilitate the development of smart factories.
Furthermore, AI adoption aligns with Thailand’s goals for carbon neutrality and sustainable industrial development, positioning the manufacturing sector as a cornerstone of a resilient and competitive economy.
Rising AI adoption in manufacturing
AI adoption in Thailand’s manufacturing sector is anticipated to increase by up to 15% by 2030. While only 18% of the broader business ecosystem has adopted AI, the potential benefits for manufacturing are substantial.
AI is expected to enhance demand forecasting, improve service levels by 65%, boost productivity by 20% through automation, and predict maintenance needs to reduce machine downtime by 53%. Additionally, AI could significantly decrease unsafe workplace behaviours by up to 90%.
Data hurdles to AI success
Despite these promising forecasts, challenges remain. A significant 65% of manufacturers cite data quality as a major barrier to successful AI implementation. Additionally, inadequate infrastructure is also hindering AI adoption, affecting two-thirds of manufacturing organisations.
Kulwipa Piyawattanametha, managing director of SAP Thailand, noted that high-quality data is essential for effective AI deployment.
She pointed out that over 34,000 customers globally use SAP Business AI, benefiting from advanced capabilities that optimise operations through real-time data analysis and automated decision-making.
Policy framework for growth
The whitepaper outlines key policy recommendations to foster growth in AI adoption among Thai manufacturers. These include establishing AI governance strategies to mitigate risks, removing regulatory ambiguities, and enhancing public-private sector collaboration through specialised industry subcommittees.
Dr. Thongmeensuk highlighted that fostering a robust AI ecosystem in Thailand requires focused efforts, including revising government incentives and enhancing partnerships between government agencies and private enterprises.
By prioritising these initiatives, Thailand can create a supportive environment for AI adoption, ultimately driving growth and competitiveness in the manufacturing sector.
As Thailand embarks on its journey towards Industry 4.0, the successful integration of AI will be crucial for unlocking the full potential of its manufacturing industry and ensuring sustainable economic growth.
