Digital Transformation Accelerates for Thai Small and Medium Enterprises
A significant push is underway to equip Thailand’s small and medium-sized enterprises (SMEs) with advanced digital tools, particularly artificial intelligence (AI), to bolster their competitiveness and drive sustainable growth. Leading telecommunications provider Advanced Info Service (AIS) has joined forces with Microsoft Thailand to launch the ‘AI Ready for SMEs’ initiative. This program aims to provide these businesses with secure access to AI technologies, offering tailored packages and nationwide roadshows to enhance solution adoption.
SMEs are a cornerstone of the Thai economy, contributing approximately 35% of the nation’s Gross Domestic Product (GDP). With over 3.13 million SMEs representing 99.7% of all businesses and employing 70% of the workforce, their digital advancement is critical for national economic health.
Key Pillars of the ‘AI Ready for SMEs’ Initiative
The initiative is built upon three core pillars, integrating AI capabilities with Microsoft 365 and Copilot solutions. A dedicated AIS Service Desk, staffed by experts and available 24/7 via a hotline, ensures a smooth, secure, and efficient transition to AI for SMEs. Early adopters of the Copilot package are being offered complimentary workshops, with additional private on-site training provided for those subscribing to 10 or more licenses, customizing AI usage to specific business needs.
AIS and Microsoft are also conducting educational roadshows across seven regions nationwide, with a goal to train over 700 SME entrepreneurs in AI capabilities by the end of 2026. The program also features ‘SME AI agents’ – pre-built AI solutions designed to address common business challenges. These include customizable AI agent templates for Copilot, with plans to expand to areas like human resources, finance, and specialized agents for industries such as smart manufacturing.
True Corporation Focuses on ‘Smart Energy’ Solutions
Meanwhile, True Corporation is implementing ‘smart energy’ solutions to help businesses reduce operational costs. Teeradet Dumrongbhalasitr, chief business officer at True Corp, highlighted that the integration of AI and the Internet of Things (IoT) is forming the ‘intelligence layer’ of modern energy systems, playing a crucial role in mitigating the energy crisis and lowering expenses.
Analysis indicates that 30-40% of energy costs in SMEs can be attributed to ‘invisible waste’ – undetected power leaks. True’s data identified four primary sources: always-on standby equipment (12%), inefficient air conditioning (9%), faulty hardware leading to electricity leakage (8%), and unoptimized lighting (6%).
True has deployed intelligent network solutions across various sectors, demonstrating significant energy savings. In retail, AI optimization in over 1,000 stores has reduced energy consumption by 22% through real-time management of HVAC and cold-chain systems. For commercial offices, occupancy sensors have cut after-hours utility use by 28%.
ETDA Drives Digital Adoption and Maturity
The Electronic Transactions Development Agency (ETDA) has also launched a nationwide campaign to accelerate digital adoption among Thai SMEs. Meetham Na Ranong, deputy director of ETDA, noted that while the agency’s 2025 Digital Maturity Index showed a slight improvement, Thai SMEs are largely classified as ‘digital followers,’ indicating underutilization of technology for business advantage.
Many business operators currently rely on basic digital tools for sales and communication, hesitating to integrate technology into core operations like data analytics or workflow optimization due to uncertainty and ROI concerns. ETDA is collaborating with public and financial partners to create a comprehensive support system, including roadshows, workshops, and consultation clinics targeting 16 provinces and key sectors like trading, services, and manufacturing.
Addressing Efficiency Bottlenecks and Shifting to Value
Veerachai Monsintorn, head of the Small and Medium Industrial Institute (SMI), pointed out that local SMEs face efficiency challenges from intense price competition and outdated management styles. This prevents them from capitalizing on high-value opportunities in emerging sectors. To facilitate this transition, the SMI and the Federation of Thai Industries (FTI) are promoting a shared resources model, encouraging SMEs to collaborate on digital data, technology, and personnel to move towards value-added differentiation.
SME Leaders on AI: Threats and Opportunities
Michael Chen, CEO of Buzzebees, shared concerns about unseen competitors leveraging AI to create offerings rapidly. He emphasized that the real challenge lies not just in AI adoption, but in transforming its usage into tangible business benefits. “If we don’t change and don’t know how to use it, we definitely won’t survive,” Chen stated, advocating for AI integration across all departments. He warned that without adaptation, up to 90% of SMEs could face survival issues.
However, Chen also stressed the irreplaceable human element in business. He likened AI’s impact to the introduction of Excel, where professionals adapted rather than being replaced. “No matter how smart AI gets, it cannot completely replace humans because working often requires emotion and empathy, which AI lacks,” he explained, highlighting the continued importance of human collaboration and direct communication, especially in remote work environments.
Microsoft’s Perspective on AI Accessibility and Impact
Ralph Haupter, executive vice-president and chief revenue officer for SMEs at Microsoft, affirmed that AI’s fundamental strength lies in its size-agnostic nature, offering equal benefits to small businesses and large enterprises. He noted that SMEs globally are increasingly building their own lightweight AI agents and applications to overcome common obstacles like recruitment, marketing agility, and financial reporting.
Dhanawat Suthumpun, managing director of Microsoft Thailand, added that in the AI era, speed and creativity are paramount. He urged Thai SMEs to seize the opportunity presented by AI as a competitive tool, emphasizing that even small companies can deploy AI agents at scale.
Addressing Cost Concerns and Future Outlook
Regarding investment costs, Dhanawat Suthumpun indicated that current trends show a decline in AI expenditure per token, not an increase. The user-based subscription model offers flexibility, allowing organizations to start small and scale as value is demonstrated, thereby reducing financial risk.
Haupter further explained that market competition naturally constrains pricing, and multiple AI model tiers allow for cost optimization by matching the appropriate model to specific tasks. As the industry matures, greater sophistication in model selection and task optimization will continue to drive down effective costs for businesses.
