22-11-2023 (BANGKOK) Microsoft Thailand has announced plans to make the nation an artificial intelligence (AI) hub in Asia by establishing an AI Centre of Excellence and developing a cloud data centre region. The Thai government and Microsoft signed a memorandum of understanding (MoU) on November 15 during Prime Minister Srettha Thavisin’s participation at the APEC Leaders’ Meeting 2023 in San Francisco.
Dhanawat Suthumpun, Managing Director of Microsoft Thailand, stated that the company believes Thailand has the potential to become one of the AI hubs in Asia but emphasizes the need for ongoing support and collaboration with the government.
As part of its AI initiative, Microsoft will invest in a cluster of data centres within the country, known as a cloud data centre region. This move will not only support local cloud services with low network latency but also enable AI computing tasks to be performed within Asia.
To facilitate the energy requirements of these data centres, the Thai government will need to support renewable energy resources. Microsoft has committed to using renewable energy for all its data centres globally by 2025.
Mr. Dhanawat also highlighted the importance of amending state procurement rules to support cloud service usage on a subscription basis and promoting long-term cloud usage. Discussions are still ongoing regarding government tax incentives to support the establishment of Microsoft’s data centres.
In collaboration with the Big Data Institute under the Digital Economy and Society Ministry, Microsoft will establish the AI Centre of Excellence in Thailand. The centre’s primary objective is to accelerate existing AI projects in the public sector.
Microsoft will assign data scientists to work with the government on generative AI use cases and develop proof of concepts to demonstrate how AI can enhance digital government services and improve productivity.
Under the MoU, Microsoft has selected three ministries as early adopters in e-government projects. Additionally, the company aims to equip 10 million Thais with future-ready skills by working alongside ministries and other stakeholders.
The Thai government has outlined a National AI Strategy roadmap, which aims to generate 48 billion baht in business and social impact by 2027.
In line with their commitment to sustainability, Microsoft also offers a sustainability cloud service as part of a sustainability sandbox to help businesses in Thailand achieve their carbon footprint goals.
Investing in AI will enable both the government and businesses to increase productivity and reduce expenses without the need to expand the workforce, according to Mr. Dhanawat. He likened generative AI to the early days of smartphones and the internet, emphasizing the collaborative potential between humans and AI.
Microsoft has already integrated AI capabilities into its products, particularly its Office 365 productivity tool. The company’s Copilot for Microsoft 365, an add-on feature with AI capabilities, has been available to enterprise customers worldwide since November 1. Thai language support for Copilot for Microsoft 365 will be available in early 2024.
Several companies in Thailand, including Advanced Info Service, Siam Commercial Bank, and PTT Exploration and Production, have tested the Copilot for Microsoft 365 over the past three months. According to a Microsoft survey of Copilot business users across 41 countries, early adopters reported a 12-15% increase in productivity, with 70% of users stating they were more productive and 68% indicating an improvement in the quality of their work. On average, Copilot users were 29% faster at tasks such as searching, writing, and summarizing.
In addition to its AI initiatives, Microsoft invested in Surface laptop production in Thailand last year, leveraging the country’s strategic location for its global supply chain.
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