New whitepaper reveals how AI offers a transformative opportunity for manufacturing to drive Thailand 4.0

BANGKOK, 27 May 2025 – A new whitepaper published today has revealed how artificial intelligence (AI) will be central to the success of the Thailand 4.0 strategy, which aims to transform the economy from reliance on traditional manufacturing to one driven by innovation and high-tech industries.

However, the whitepaper, created by the Thailand Development Research Institute (TDRI) in collaboration with the Electronic Transactions Development (ETDA) under the Ministry of Digital Economy and Society (MDES) and SAP, a market leader in enterprise software, notes there is still much to be done. Only two per cent of manufacturers in Thailand have fully transitioned to Industry 4.0 standards, despite the potential for AI adoption in Thailand to expand to 300 use cases across manufacturing, positioning the country as a leader in the region.

Dr. Chaichana Mitrpant

Dr. Chaichana Mitrpant, Executive Director, at ETDA noted, “The insights contained in this whitepaper will contribute to greater adoption of AI in the manufacturing sector, which we believe is pivotal to advancing Thailand's national objectives under the Thailand 4.0 strategy. Collaboration across private and public sectors will be essential to achieve these goals, especially to improve areas including AI governance. Working alongside companies like SAP, we are committed to helping businesses across Thailand benefit from the innovation that AI promises."

Dr. Saliltorn Thongmeensuk

Dr. Saliltorn Thongmeensuk, Senior Research Fellow, at TDRI noted, “AI technologies can drive this transformation by enhancing productivity, fostering innovation, and enabling the development of smart factories – as well as helping to boost Thailand's carbon neutrality goals. Through widespread AI adoption, the manufacturing sector can position itself as a cornerstone for sustainable industrial development, aligning with Thailand's vision for a resilient and competitive global economy.”

Manufacturing in Thailand ready to realise enormous AI benefits

Adoption of AI is set to expand rapidly for manufacturing companies in Thailand. Despite just 18% of Thailand’s wider business ecosystem having adopting AI today, the manufacturing sector is expected to see a 60% rise in AI adoption by 2025.

Manufacturing businesses could realise significant benefits from AI. AI is expected to enhance demand forecasting to reduce lost sales by 65%, improve productivity by 20% through AI-enhanced industrial automation, reduce machine downtime for 20% through predictive maintenance, and reduce unsafe workplace behaviours by 90%.  

Data remains a key AI hurdle for Thai manufacturers 

While almost three quarters (73%) of Thai organisations plan to adopt AI, several challenges persist. In particular, data represents a key hurdle for AI success in Thai manufacturing. 

Almost two-thirds (65%) of manufacturing organisations cite data quality concerns as a significant barrier, with a similar figure (65%) of Thai manufacturers noting inadequate infrastructure is affecting their AI adoption. 

Kulwipa Piyawattanametha, Managing Director of SAP Thailand

“The only way to get the best Business AI is with the best data,” said Kulwipa Piyawattanametha, Managing Director of SAP Thailand. “Today, more than 34,000 customers use SAP Business AI, including thousands across Asia. They benefit from embedding advanced AI capabilities to optimize business operations through real-time data analysis, automated decision-making, improved forecasting, and enhanced productivity. With relevant, reliable, and responsible Business AI, connected with a full understanding of the business and the most comprehensive data, Thai manufacturers can trust their data privacy, security, and compliance while realizing the enormous benefits of the Thailand 4.0 strategy – for their businesses, and for the country.”

A policy framework to encourage growth

The whitepaper also outlines key policy recommendations to encourage organisational and economic success for Thai manufacturers using Business AI.

In particular, the whitepaper recommends the establishment of AI governance strategies to minimise potential risks, regulatory adjustments to remove ambiguity around whether AI adoption conflicts with existing regulations and driving greater public-private sector collaboration through industry-specific subcommittees.

Commenting on the recommendations, Dr. Saliltorn Thongmeensuk, Senior Research Fellow, at TDRI, noted, “Thailand’s journey to foster a more robust AI ecosystem will require focus to establish AI governance strategies, review government incentives, enhance partnerships between government agencies and private enterprises, and encourage international collaboration. Businesses need consultation to identify which AI solutions are most suitable for them to ensure a strong return on investment (ROI).  By prioritizing these initiatives, Thailand can create a more supportive environment for businesses to embrace AI, ultimately driving growth and competitiveness in the manufacturing sector.”

“Through greater collaboration and investment, the public sector and enterprises like SAP can achieve our joint mission of ensuring AI moves the Thailand toward Industry 4.0,” concluded Piyawattanametha. “Using AI-powered innovation, we foresee great growth and prosperity not only for the manufacturing sector, but for the economy as a whole.”

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