Microsoft Thailand plans to use the nation as an artificial intelligence (AI) hub in Asia by establishing an AI Centre of Excellence and developing its cloud data centre region.
The Thai government and US tech giant Microsoft signed a memorandum of understanding (MoU) on Nov 15 to pursue a digital-first, AI-powered country during Prime Minister Srettha Thavisin's attendance at the Apec Leaders' Meeting 2023 in San Francisco.
After the signing, the company will continue its commitment to execute and work with the Thai government and have quarterly meetings with the prime minister, Dhanawat Suthumpun, managing director of Microsoft Thailand, said after the company's first-ever AI Summit event in Thailand.
"We see Thailand has the potential to be one of the AI hubs in Asia, but it requires ongoing support and collaboration with the government," he added.
By having the AI hub, the company will invest in the cloud data centre region, which is a cluster of data centres in the country. This move will not just support local cloud use with low network latency but will also serve to compute AI tasks in Asia.
The government will have to support renewable energy resources to feed such data centres. Globally, by 2025 all of Microsoft's data centres will use renewable energy.
Mr Dhanawat added that policymakers should amend state procurement rules to support cloud service usage on a subscription basis and promote long-term cloud usage.
"We're still in discussions on the issue of government tax incentives to support the establishment of our data centres," he said.
Microsoft will also set up the AI Centre of Excellence in Thailand in collaboration with the Big Data Institute under the Digital Economy and Society Ministry. The centre aims to accelerate existing AI projects in the public sector.
The company will also assign data scientists to work with the government in generative AI use cases and make proof of concept to demonstrate how AI can help the state improve digital government services and improve productivity, said Mr Dhanawat.
Microsoft selected three ministries as early adopters in e-government projects under the MoU it signed with the government. It will also continue its mission to develop future-ready skills for 10 million Thais by working alongside the ministries and other stakeholders to equip Thais with crucial skills.
The Thai government has a National AI Strategy roadmap, which aims to generate 48 billion baht in business and social impact by 2027.
"We also provide a sustainability cloud service as part of a sustainability sandbox to help business in Thailand achieve the carbon footprint goal," Mr Dhanawat said.
He said that investing in AI will help both the government and businesses increase productivity and reduce expenses without the need to increase the workforce.
Mr Dhanawat said Microsoft sees generative AI as like the early days of smartphones and the internet.
"We are in the age of Copilot generative AI where humans work alongside AI," he said.
Microsoft Copilot is an add-on feature with AI capabilities.
The company has already integrated AI capabilities in its products, mainly in its Office 365 productivity tool.
The Copilot for Microsoft 365 has been available to enterprise customers worldwide since Nov 1, working in conjunction with everyday applications like Word, Excel, PowerPoint, Outlook, and Teams. The Copilot for Microsoft 365 with Thai language support will be available in early 2024, Mr Dhanawat said.
Companies in Thailand have tested the Copilot for Microsoft 365 over the past three months, including Advanced Info Service, Siam Commercial Bank, and PTT Exploration and Production.
According to a Microsoft survey of Copilot business users across 41 countries, the early adopters reported a 12-15% increase in productivity. Some 70% of Copilot users said they were more productive, and 68% felt it improved the quality of their work.
On average, Copilot users were 29% faster at tasks such as searching, writing and summarising.
Apart from AI, the company also invested in its Surface laptop production in Thailand last year as it sees the country's location as a geopolitical advantage for its global supply chain.