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World Bank urges AI upskilling in Thailand to tackle labor crisis

Thailand faces a potential labor crisis amid an aging population and skills gaps, according to the World Bank.

During a seminar on February 24, the bank highlighted that Thailand’s high AI adoption could boost GDP by up to 20% if workers develop relevant digital skills.

The report notes that Thailand, like much of ASEAN, is experiencing a shrinking workforce with a future worker-to-retired-person ratio of 1:2.

Experts recommend accelerating upskilling programs to address the tech talent shortage.

The bank also emphasized the importance of applying AI, robotics, and cloud computing in manufacturing to create higher-value jobs.

Environmental risks, including flood-prone areas affecting over 60% of the population, pose economic threats, with Thailand needing up to US$219 billion in investment to mitigate these risks.

🔗 Source: Nation Thailand

🧠 Food for thought

Implications, context, and why it matters.

Thailand’s skills gap focuses on advanced AI talent

  • Thai workers describe a “tech talent shortage” that goes beyond basic digital literacy, with more emphasis on advanced capabilities than many peers across APAC.
  • Survey results put AI and machine learning near the top, with 60.7% of employees calling those skills a “must-have” versus the Asia-Pacific average of 32.8% 1.
  • Beyond AI, respondents also label data analysis/visualisation at 80.4% and cybersecurity at 78.6% as “must-have” skills 1.
  • Microsoft Thailand is working with the Thai government on the THAI Academy programme, which targets upskilling over 1 million Thais by the end of 2025 with support from more than 35 public and private sector organisations 2.

AI-driven growth may come with a rougher job reshuffle

  • Efforts to create “higher-value jobs” with AI fit a wider pattern in parts of Southeast Asia as firms adopt AI, robotics, and cloud computing.
  • From 2018 to 2022, estimates for Indonesia, Malaysia, the Philippines, Thailand, and Viet Nam put automation at about 2 million new jobs for skilled formal workers, while about 1.4 million low-skilled formal roles faced displacement 3.
  • This split can widen income gaps between high-skill earners and workers pushed out, and the World Bank report says robotisation does not spread gains evenly 3.
  • Commentary alongside the World Bank’s report adds that faster tech adoption than institutional capacity can spill beyond employment into governance and macroeconomic stability risks 4.

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