CP's Dhanin backs AI and sweeping reforms to boost Thailand

CP Group senior chairman Dhanin Chearavanont has called for sweeping government reforms to help Thailand capitalise on artificial intelligence (AI) and emerging technologies, arguing that stronger workforce capabilities, international investment and modern infrastructure are essential to unlocking the country's economic potential.

Speaking in a special interview titled "Thailand's economic future" at Nation Forum x Dinner Talk: Thailand Agenda 2027 in Bangkok on Tuesday (October 20), Dhanin emphasised that technological progress offered significant opportunities, but Thailand would need to modernise its education system, remove regulatory obstacles and invest strategically to realise them.

The government, he argued, must act decisively to ensure that Thai businesses and workers benefit from advances in technology rather than fall behind international competitors.

AI presents opportunities for Thailand's workforce

Dhanin described AI as a transformative technology capable of narrowing knowledge gaps and helping people achieve results previously associated with highly trained specialists.

He believed that people's abilities should be judged not simply by what they already knew, but by how effectively they could use technology.

"AI is a great equaliser — people with less knowledge can gain equal capabilities if they learn how to use it," he explained.

This shift, he argued, required a fundamental reassessment of education. Universities should move beyond traditional teaching methods centred on memorising information and instead equip students with the practical skills and judgement needed to apply AI.

He also challenged concerns that technological advances would inevitably result in permanent job losses.

Drawing parallels with the introduction of agricultural tractors in the United States, which initially raised fears about employment but ultimately contributed to significant productivity gains, Dhanin maintained that AI could similarly increase human capabilities and improve economic performance.

In his assessment, the technology would enable people to work more efficiently and boost gross domestic product (GDP), provided workers received adequate training.

Government reforms essential to technological progress

Dhanin stressed that Thailand's ability to seize technological opportunities would depend heavily on how quickly the government adapted its policies and administrative systems.

Outdated legislation and cumbersome regulations, he warned, could prevent businesses from adopting innovations and undermine the country's competitiveness.

"If the private sector changes, the government and the law must change at the same pace," he argued.

He therefore called for regulatory reforms that would allow businesses to respond more quickly to technological developments and emerging market opportunities.

Reforming the civil service was another priority. Dhanin proposed offering government officials salaries higher than those available in the private sector to attract capable professionals into public administration.

He believed better remuneration would help the state recruit talented individuals able to make timely decisions that benefit the economy.

Government agencies should also make greater use of real-time information on global markets to identify promising export industries and develop policies that support their expansion.

Rather than waiting for economic conditions to change, he advocated a more proactive approach to strengthening Thailand's international competitiveness.

Foreign expertise could help overcome workforce shortages

Thailand's declining birth rate represented another significant challenge to its long-term economic ambitions.

Dhanin noted that annual births in Thailand had fallen to approximately 300,000, warning that the shrinking supply of young workers could constrain the development of technology-driven industries.

He proposed that Thailand actively recruit five million highly skilled professionals from overseas, particularly specialists in AI, data and other advanced technologies.

Such an initiative, he believed, would help establish new industries and strengthen the capabilities of Thai workers through knowledge transfer and professional development.

He rejected the assumption that bringing in foreign expertise would necessarily deprive local workers of employment opportunities.

Instead, international specialists could contribute to business development, create jobs, generate tax revenue and help develop domestic talent needed for future economic expansion.

The proposal formed part of his wider vision of attracting overseas expertise and investment to Thailand while developing the skills of its existing workforce.

Infrastructure investment must support future industries

Dhanin also encouraged the government to adopt a more strategic approach to public borrowing, distinguishing between debt incurred for consumption and borrowing used to develop economically productive assets.

He maintained that government investment in industries and infrastructure capable of generating returns could support higher economic growth over the long term.

"We are not borrowing to spend on consumption; we are borrowing to build industries and infrastructure that guarantee returns," he explained.

Digital infrastructure was particularly important to this strategy.

Describing data centres as the "digital brain factories" of the modern economy, he highlighted their growing significance in supporting AI and other advanced technologies.

However, expanding such facilities would require adequate electricity supplies and supporting energy infrastructure.

Dhanin therefore advocated greater investment in solar energy, battery storage systems and modern electricity networks capable of supplying cleaner and more reliable power.

Water infrastructure also needed attention. He proposed using advanced technologies to improve water storage and distribution, arguing that better management could prevent flooding and potentially triple annual agricultural yields.

For Dhanin, infrastructure development was not simply a matter of increasing public expenditure but of creating productive foundations for future economic activity.

Modern agriculture and greater efficiency can strengthen competitiveness

Beyond digital industries, Dhanin emphasised that Thailand's traditional economic sectors could also benefit considerably from technological advances.

Agriculture, he argued, should be recognised as a sophisticated, technology-intensive industry rather than a sector dependent primarily on manual labour.

Developing competitive agricultural businesses required expertise in genetics, soil science, production techniques and food processing.

Modernising logistics and processing capabilities could also help Thailand move beyond selling raw agricultural produce towards manufacturing higher-value products for international markets.

Meanwhile, technological progress had fundamentally changed the way businesses competed on price.

Dhanin recalled that buyers previously needed to obtain quotations from several suppliers to establish reasonable market prices. Digital technology now allowed them to compare prices almost immediately.

As greater price transparency reduced the scope for businesses to profit through higher mark-ups, he argued that companies would increasingly need to compete through efficiency and product quality.

Businesses should therefore focus on continuously improving production processes, lowering costs and delivering better products rather than relying on price increases.

"Nothing is ever good enough. Tomorrow must be better than today, and tomorrow must be cheaper than today," he emphasised.

His broader message was that Thailand's future growth depended on combining technology adoption with continuous improvement, a more capable workforce, responsive government policies and infrastructure investment that could sustain the country's competitiveness.