UOB Bank: Thai SMEs Lead Region in AI Adoption, Push Expansion into ASEAN Despite Rising Costs

The UOB Business Outlook Study 2026 reveals that over 70% of Thai SMEs are deploying AI in their operations, outpacing the regional average and helping them reduce costs and boost operational efficiency. More than 80% are planning to expand internationally over the next 2-3 years, with ASEAN emerging as a key market for both growth and risk mitigation. Released on June 29, 2026, the survey gathered input from 265 business owners and senior decision-makers across various industries nationwide, marking UOB's first semi-annual publication of the study in seven years to better track rapidly changing global and geopolitical conditions affecting business.

Thai SMEs are leading the region in technology adoption, with over seven in ten survey respondents implementing AI in their businesses—above the regional average—and over eight in ten already using digital solutions. Among AI-adopting businesses, 58% reported reduced operating costs while 44% cited improved operational efficiency, demonstrating AI's tangible business value. However, rising operating costs remain the top concern for Thai SMEs, followed by ASEAN market uncertainty, high interest rates, and economic slowdown. These pressures are particularly acute for sectors with high operational costs and complex supply chains, such as manufacturing, construction, and consumer goods.

Despite these challenges, businesses prioritize long-term competitiveness over short-term cost-cutting, ranking ESG (37%), customer base expansion (33%), and digital transformation (27%) as higher business priorities than cost reduction (25%) over the next 1-3 years. UOB Bank Thailand Deputy CEO Veeranong Jiranakorn noted that Thai businesses are operating in an increasingly complex environment where cost pressures, supply chain disruptions, and geopolitical uncertainty are no longer temporary challenges but structural changes requiring fundamental business model adaptation.