Thailand Needs AI Skills Now to Combat Economic Downturn
Thailand’s job market faces ongoing challenges amid economic uncertainty, prompting businesses to urge the government to prioritize developing a technologically adept workforce. Large-scale layoffs continue to plague several sectors, fueled by declining domestic purchasing power and escalating global trade tensions, particularly the US-China trade war. While some sectors struggle, the tech industry experiences robust demand for specialized skills, highlighting the need for a national strategy to bridge the widening skills gap.
The manufacturing sector bears the brunt of the economic downturn, with the automotive industry particularly hard hit. Tanit Sorat, Vice Chairman of the Employers' Confederation of Thai Trade and Industry, paints a bleak picture, citing factory closures and impending layoffs. Declining domestic vehicle sales, compounded by US tariff policies, have created a “very serious situation for automakers,” according to Mr. Sorat. The impact ripples through related industries, including auto parts, plastics, garments, and furniture, as low-cost Chinese products flood the market.
The residential development sector also faces significant headwinds. Prasert Taedullayasatit, President of the Thai Condominium Association, notes widespread organizational restructuring among developers, with layoffs stemming from poor performance in the previous year. Falling profit margins for listed developers underscore the severity of the market slowdown. This cost-cutting strategy reflects the challenging real estate environment, prompting developers to prioritize operational efficiency.
Amid these economic challenges, a clear trend emerges: the rising demand for tech skills, particularly in Artificial Intelligence (AI). Jackie Wang, Country Director of Google Thailand, highlights the rapid technological shift across industries. While acknowledging the evolution of certain jobs due to automation, Ms. Wang emphasizes AI’s potential to augment human capabilities, not replace them. She underscores the growing demand for specialists in AI development, cloud computing, and cybersecurity. Google anticipates headcount growth in these key investment areas in 2025 and advocates for government investment in AI-ready workforce development. Echoing this sentiment, Prae Dumrongmongcolgul, Country Director of Facebook Thailand, emphasizes the importance of human-AI collaboration and Meta’s development of AI tools to enhance productivity.
This need for a skilled tech workforce contrasts sharply with a concerning lack of interest among young people in acquiring these skills, according to Somchai Sittichaisrichart, Managing Director of SiS Distribution (Thailand). This disparity further exacerbates the existing worker shortage in crucial areas like cybersecurity, cloud computing, and AI. While the immediate threat of AI replacing human workers is minimal, Mr. Sittichaisrichart predicts it could begin within two years, adding urgency to the call for skills development.
Interestingly, even traditional sectors are embracing technology. Pun Paniangvait, General Manager of Thai President Foods Plc (Mama instant noodles), describes the company’s strategic use of robotics and AI to enhance productivity and manage rising labor costs. He advocates for greater government support for vocational education and industry collaboration with vocational colleges to create a skilled workforce.
The restaurant industry, facing persistent labor shortages, is also turning to technology. Thaniwan Kulmongkol, President of the Thai Restaurant Association, notes the increasing adoption of self-service systems, but acknowledges the high cost of implementation and the continued need for skilled workers to operate and maintain these technologies.
Sanan Angubolkul, Chairman of the Thai Chamber of Commerce, identifies key labor market challenges, including an aging population, declining birth rates, low productivity, and a skills gap. He emphasizes the need to improve educational quality and points to China’s proactive approach to AI education as a model for Thailand. Mr. Angubolkul underscores that while AI will play an increasingly important role, human qualities like creativity, craftsmanship, and problem-solving will remain essential.
The confluence of economic pressures and technological advancements presents a pivotal moment for Thailand. The nation must prioritize developing a workforce equipped with the skills needed to navigate this evolving landscape. This requires a multi-pronged approach: fostering interest in tech fields among young people, strengthening vocational training programs, and fostering public-private partnerships to bridge the skills gap and prepare Thailand for a future driven by AI. Failure to adapt risks exacerbating existing economic challenges and hindering the nation’s competitiveness in the global marketplace.
