Thailand is driving change with AI and green technology!

Thailand is driving change with AI and green technology!

Thailand is at a crossroads – opportunities and challenges in transitioning to sustainable technologies. The World Bank's latest report, Country Climate and Development Report (CCDR), highlights that the country can develop new industries by transitioning to greener products and services. This could make Thailand an attractive location for social impact investors interested in positive social and environmental impacts, such as Bangkok Biz News reported.

But as always, there are also hurdles. Thailand's competitiveness is threatened by structural problems, particularly for small and medium-sized enterprises (SMEs). In particular, the dominance of large companies, a lack of capital and innovation deficits are challenges that need to be overcome. To create the necessary ecosystem for green technologies, the report proposes the introduction of strategic policies that, among other things, should encourage investments in green technologies and tax incentives for sustainable business practices.

Focus on growth sectors

As part of these efforts, the National Innovation Agency (NIA) has also taken measures to strengthen the startup ecosystem in Thailand. The period since 2021 saw growth of 3.3 percent, underlining optimism about the future. The focus is on artificial intelligence (AI), green technology and financial technology (FinTech). NIA Director, Krithpaka Boonfueng, emphasizes that with 2,100 startups - 700 in the pre-seed stage and 1,400 in the growth phase - Thailand is on track to compete in the Global Startup Ecosystem Index, where it ranks fourth in Southeast Asia, behind only Singapore, Indonesia and Malaysia, as Thai Times reported.

A particularly interesting detail is that seed round funding increased by 4 percent compared to last year, with 26 percent of investments going to the FinTech sector. The NIA follows a diverse strategy under the motto “Groom-Grant-Growth-Global”, which means that startups receive not only financial support but also access to incubation programs and international partnerships.

Legal framework and support for SMEs

However, not everything is rosy. The complex and often unclear laws surrounding green technologies are an obstacle that needs to be addressed. Despite the BOI's efforts to promote investment in green technologies, legal uncertainty remains a major problem. There is a need to consider more comprehensive measures to support SMEs so that they can increase their competitiveness - especially in view of the upcoming requirements for net greenhouse gas emissions by 2065.

The role of artificial intelligence should not be neglected either. The use of AI to analyze production data and improve energy management is considered essential. This could make a decisive contribution to automating processes and supporting the transition to more environmentally friendly business models.

Overall, there is a lot of potential for Thailand in the area of ​​green technologies and sustainable initiatives - but decisive steps are needed to overcome the existing challenges. A clear integration of environmental and technology regulations could make a decisive contribution to Thailand emerging not only as a location for startups, but also as a pioneer in sustainable development. These are, like that World Bank report shows the conditions that can lead the nation towards a green, prosperous future.