The Future of Manufacturing in Thailand: Unlocking Potential and Navigating Risks with AI

 

 

Manufacturing has long been the formidable engine of ASEAN economies, fueling growth and innovation and contributing between 16% – 27% of GDP in key markets including Thailand. The country ranks 10th in the 2025 Asia Manufacturing Index, presenting a mixed bag for manufacturers and boasting attractive parameters in infrastructure and certain business processes.

 

As Thailand’s manufacturing industry continues to modernize, it faces an increasingly complex array of challenges. The adoption of digital technologies has significantly transformed operations, boosting efficiency through automation, IoT and real-time analytics. However, this digital shift and reliance on smart technologies have also heightened the sector’s exposure to cyber threats.

 

Artificial Intelligence (AI) adoption in Thailand’s manufacturing sector is poised for rapid growth by 2030, driven by the need for greater efficiency and competitiveness. While only 18% of businesses nationwide currently use AI, manufacturers are increasingly embracing smart technologies for predictive maintenance, quality assurance and supply chain optimization.

 

AI, while transforming manufacturing by automating processes, optimizing production lines and improving supply chain management, also presents a paradox. It can analyze real-time data to predict maintenance needs and reduce downtime, driving unprecedented productivity. At the same time, AI has the potential to significantly enhance cybersecurity by detecting and preventing attacks faster than ever before. However, it also introduces new risks, as cybercriminals can use the same AI technologies to exploit vulnerabilities in OT systems.

 

AI As a Force Multiplier for Security

 

AI isn’t just another tool in the cybersecurity arsenal it’s a game-changer. Its ability to process massive amounts of data in real time allows it to spot patterns and anomalies that human analysts could easily miss. In manufacturing, this means AI can detect potential threats before they escalate, offering a critical advantage in protecting Operational Technology (OT) systems.

 

The stakes are high. OT systems control everything from production lines to supply chain logistics, so any disruption can lead to operational shutdowns, causing significant financial losses and in some cases, even compromising safety. This makes early detection crucial and AI’s speed and efficiency give manufacturers the edge they need.

 

But here’s the catch: simply implementing AI isn’t enough. For it to be truly effective, manufacturers need to overcome a common obstacle the traditional divide between IT and OT teams. Historically, these two departments have worked in silos, with different priorities and approaches. IT focuses on company-wide security, while OT has been more concerned with keeping operations running smoothly. This lack of alignment can create security gaps, leaving systems vulnerable.

 

For AI to reach its full potential in cybersecurity, it has to be part of a coordinated effort that bridges the gap between IT and OT. When these teams work together, they can create a seamless defense strategy that leverages AI’s full capabilities.

 

Mitigating the Risks: Best Practices for AI Integration

 

The power of AI is undeniable, and there are ways for manufacturers to harness AI effectively while minimizing its risks. Manufacturers should:

 

• Foster collaboration between IT and OT teams to share cybersecurity responsibility, ensuring coordinated AI deployment and smarter security decisions.
• Adopt Zero Trust principles  “never trust, always verify” continuously authenticating all users, devices, and connections to reduce AI-driven attack risks.
• Regularly assess and update AI cybersecurity tools to keep pace with evolving threats and increasingly sophisticated cybercriminal tactics.

 

The Path Forward for Thailand’s Manufacturing Sector

 

Looking ahead, the future of Thailand’s manufacturing sector hinges on its ability to strategically integrate cybersecurity with emerging technologies like AI. As AI becomes a central force in boosting productivity and operational efficiency, it also introduces new vectors for cyber threats, particularly in increasingly connected industrial environments.

 

Thai manufacturers must adopt a balanced approach, leveraging AI-driven security tools while embedding comprehensive OT-IT collaboration and Zero Trust principles. The Thai government’s push to expand the digital economy and its National AI Strategy (2022–2027) underscores the urgency of aligning innovation with strong cybersecurity governance. To ensure this digital transformation is both effective and sustainable, the industry must prioritize robust cybersecurity protocols, invest in workforce upskilling, especially in AI and cybersecurity competencies, and stay aligned with evolving regulatory standards. With these measures, Thailand’s manufacturing industry can not only defend against evolving cyber risks but also thrive as a competitive, innovation-driven force in the global economy

 

Attributed to: Steven Scheurmann, Regional Vice President, ASEAN, Palo Alto Networks