The Reporter Asia – Artificial intelligence (AI) is rapidly transforming labor markets worldwide, and Thailand is no exception. While concerns about AI replacing human jobs are widespread, a recent report from KResearch suggests that the impact of AI on the Thai labor market may not be as severe as initially feared.
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A 2024 survey of Thai CEOs by PwC revealed that 61% believe AI will significantly change their business operations in the next three years, with 58% recognizing the need to upskill their workforce. However, only 36% have actually implemented AI in their businesses, highlighting the challenges in adapting to this technological shift.
| Service Sector Industry | Number of Employees (‘000) |
|---|---|
| Information and communication | 23.8 |
| Finance and insurance activities | 28.8 |
| Professional, scientific, and technical activities | 95.1 |
| Administrative and support services | 93.7 |
| Public administration and defense | 35.9 |
| Wholesale and retail trade; repair of motor vehicles | 3,436.9 |
| Transportation and storage | 475.6 |
| Arts, entertainment, and recreation | 148.8 |
| Construction | 1,765.2 |
| Real estate activities | 73.5 |
| Education | 60.4 |
| Human health and social work activities | 39.3 |
| Accommodation and food service activities | 914.2 |
| Other service activities | 685.6 |
| Activities of households as employers | 21.6 |
AI: Not a Replacement, but an Enhancement
While AI can perform many tasks previously done by humans, KResearch believes that it will not entirely replace the workforce. Instead, it will augment human capabilities, increasing efficiency and productivity, particularly in the service sector, which accounts for over 52.4% of Thailand’s GDP.
Winners and Losers in the AI Era
Jobs most at risk are those requiring academic skills and general office work, such as finance, technical services,communications, and design. Meanwhile, jobs that demand specialized skills and human interaction, like teaching,healthcare, and direct customer service, will remain in high demand.
Although only 3.5% of service sector jobs are expected to be replaced by AI, the economic impact will be substantial. The GDP of the service sector could be affected by up to 34.7%, as jobs at risk tend to be those with high economic value,such as finance and investment.
Preparing for the Future of Work
KResearch emphasizes the importance of preparing for this transformation. It suggests that professionals in academic fields adapt their mindset and develop skills in using AI tools to enhance their work. Additionally, businesses should invest in upskilling their employees and promote the effective implementation of AI within their organizations.
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