The software vendor revenue in Thailand has achieved a remarkable 14.1 percent growth in local currency to 36.5 billion THB in the first half of 2023, according to the International Data Corporation (IDC).
According to IDC’s Worldwide Semiannual Software Tracker, key areas driving this growth encompass artificial intelligence platforms, application platforms, and integration and orchestration middleware. The surge in interest and investment in these segments has propelled the overall market forward, demonstrating a promising future for technological advancements.
The GenAI phenomenon has taken center stage within the tech realm, drawing considerable attention due to its demonstrated capabilities. This surge in interest has catalyzed enterprises’ curiosity, urging them to integrate AI technologies within their frameworks.
Consequently, technology vendors have significantly amplified their investments in AI development, resulting in rapid strides within the field. Notably, revenue from AI platform markets witnessed a staggering 58.8 percent growth during the first half of 2023.
A illustration of AI’s application surfaced in the AI partnership between AstraZeneca Thailand and Phyathai 2 Hospital. Leveraging AI-based technology for chest X-rays, the collaboration aims to enhance lung cancer screening capabilities. However, concerns regarding AI ethics have emerged parallel to its adoption, prompting proactive measures.
In response to these concerns, the Thai government has taken decisive steps by launching the AI Governance Clinic (AIGC) and formulating the AI Ethics Guideline. Collaborating with Mahidol University and Microsoft Thailand, these initiatives aim to establish a structured framework for responsible AI adoption among organizations.
Despite the surge in AI-powered applications, the development of Language Model Machines (LLMs) in the first half of 2023 has significantly driven the adoption of Natural Language Processing (NLP) applications. However, Kavisara Korkong, Market Analyst at IDC Thailand, notes that Thai-language LLMs are lagging in accuracy compared to their English-language counterparts.
IDC projects a continued focus on NLP development for local languages, coupled with the proliferation of AI software services tailored for local businesses. This aligns with the overarching objective of promoting responsible AI principles and fostering broader AI adoption in Thailand, bolstered by governmental support and the evident benefits of AI.
Looking ahead, in the realm of customer experience (CX), the immediate future (2024-2026) will witness a concentration on the inherent value AI brings through real-time contextual conversational capabilities.
Meanwhile, the longer-term trajectory (2027-2029) is poised to emphasize edge analytics, a shift towards unified platforms from disparate solutions, the ascension of Customer Data Platforms (CDPs) as pivotal engines for enhanced customer insights, and the perpetual quest to fortify customer trust and value parity.
The remarkable growth trajectory extends across various segments, with revenue in the application platforms market surging by 29.9 percent year-over-year in local currency during the first half of 2023. Integration and orchestration software vendors experienced a commendable 25.3 percent revenue rise, affirming Thai organizations’ strides towards digital transformation (DX) by seamlessly integrating digital systems in line with their strategic objectives.
