Experts urge SMEs to embrace AI for business growth and efficiency

This suggestion came as there are more than 3.2 million SMEs in Thailand, accounting for 90% of businesses in the country. These enterprises employ 50% of the workforce nationwide.

However, these businesses face both internal and external challenges in operating, prompting them to focus on ensuring their survival and sustainable growth.

Three major challenges for SMEs include rapid digital transformation, changes in consumer behaviour, and lack of access to funding, said Praphan Charoenprawat, manager of Live Exchange.

Ubonrat Khamphaeng, assistant managing director of SME Development Bank, added that SMEs also lack knowledge on business management, as well as tools to reduce costs and enhance their potential.

While several industries are working on digital transformation, some companies face difficulties due to generational conflicts, said Akkarapol Sukta, vice president of the Institute of Information and Communication Technology for Industries.

He explained that generational conflicts often occur in family-operated businesses, where senior executives resist allowing younger generations to adopt technology in their operations.

Younger generations want to transform businesses, but they do not receive approval from senior executives, who are often family members, resulting in difficulties driving the business forward, he explained.

Despite the challenges faced by SMEs, Vorapoj Prasanpanich, assistant director of the Office of SMEs Promotion, noted that SMEs have shown their potential to adapt to digital transformation while maintaining their operations.

“The Covid-19 pandemic caused 80-90% of SMEs to adapt to digital transformation,” he said. However, he pointed out that SMEs lack awareness of AI, including the costs of technology and the risks involved in adoption.

Vorapoj stressed the importance of AI adoption to keep up with global trends. He advised government agencies to promote the use of AI and send advisers to assist SMEs with its adoption.

Wichian Premchaiswadi, vice chairman of the Digital Council of Thailand, said that AI can help SMEs improve operational efficiency in marketing and responding to customer needs.

“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,” he warned.

Dhanawat Suthumpun, managing director of Microsoft Thailand

AI to benefit the economy

During a group interview, Microsoft Thailand confirmed that AI can enhance the operational efficiency of several industries, resulting in significant benefits to the economy.

In tourism, AI can translate over 100 languages to ensure effective communication. Additionally, this technology can create a digital twin model of Wat Phra Kaew in the Phra Nakhon district to enhance the travel experience.

“Leading countries are accelerating AI adoption, so why shouldn’t we?” said the company’s managing director, Dhanawat Suthumpun.

He emphasised that only those who can use AI will replace those who cannot. While AI can assist various industries, sensitive tasks such as those in the healthcare sector still require human physicians, he explained.

Dhanawat also mentioned that SMEs can improve their operational efficiency by using free versions of AI, adding that promoting AI adoption among SMEs could increase Thailand’s GDP by 2%.

He noted that mindset is key to unlocking new business models, strategies, and products.