McKinsey foresees AI technology dominating Thailand’s future

The Thai branch of global consultancy McKinsey & Company predicts that the three most impactful trends for Thailand over the next year will be generative artificial intelligence (AI), immersive technology, and climate technology. The prediction is a part of the company’s 2023 Tech Trends Outlook, which was published in July.

Gordon Candelin, senior expert and leader of McKinsey Design Southeast Asia at McKinsey & Company Thailand, emphasised the transformative potential of generative AI technology.

“This new entrant represents the next frontier of AI. About 75% of the total value potential of applying generative AI will be realised in four business functions, one of them being customer operations. Generative AI could increase productivity at a value of 30-45% of current function costs.”

While the use of generative AI technology is still in its early stages, it is garnering considerable buzz with its potential applications for businesses, such as enhancing customer experience touchpoints.

Aside from AI, another trend to note is immersive-reality technology. In particular, the forthcoming release of Apple’s Vision Pro AR/VR headset has sparked renewed interest in augmented reality (AR) and virtual reality (VR) technologies, Candelin says.

“Our research suggests the emerging metaverse could generate up to US$4-5 trillion in value across consumer and enterprise use cases by 2030.”

The third trend, climate technology, was also highlighted by Candelin. He noted that the pandemic has offered insight into how Thailand’s natural resources can recover when tourism is reduced. However, given the economic importance of the tourism sector, maintaining the country’s natural ecosystem will require action from various sectors.

A crucial aspect outlined in the 2023 Tech Trends Outlook is the importance of tech talent as a source of competitiveness. The report indicated a shortage of qualified talent in high-tech fields such as AI, quantum technology, space technology, and electrification and renewables.

The report found that many of the skills in greatest demand have less than half as many qualified practitioners per posting as the global average. This talent shortage is particularly severe in areas such as cloud computing, industrialising machine learning, and quantum computing.