Success and succession in the AI era

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The AI era is here

Amid the transition of leadership in family-owned businesses, a significant and transformative change is occurring, driven by the powerful impact of generative AI (GenAI). This important moment reflects not only a shift in leadership but also a strategic move towards embracing a completely new technology for Thai family businesses.

As we look into 2024 and beyond, GenAI is positioned to shape the future success of family businesses, especially for the next generation of leaders (NextGen) in Thailand, who will be instrumental to leading a transformational journey for their family businesses.

This year’s survey reveals that, similar to their global counterparts, Thai NextGen have a positive outlook on GenAI compared to the incumbent generation. The survey findings indicate that 79% of Thai NextGen acknowledge that AI is a powerful force for transformation, aligning with global average of 73%. 

This also reflects alignment with Thai CEOs regarding the potential of GenAI. According to the 27th Annual CEO Survey – Thailand, 61% of Thai CEOs believe that GenAI will significantly change the way companies create, deliver and capture value.

It is crucial for Thai family businesses to develop a GenAI strategy to avoid existential crises and shape the country’s economic growth. Thai NextGen have a responsibility to their businesses, families, employees and society as a whole.
 

Thai NextGen are less interested in GenAI than global peers

Question: How personally interested would you say you are in generative AI?
 

_{Source: PwC’s Global NextGen Survey 2024 – Thailand Report}

An appetite to learn combined with digital capabilities lead to Thai NextGen generally having a positive sentiment towards GenAI. While personal interest in GenAI from Thai NextGen (64%) seems somewhat muted compared to their global peers (82%) nearly 80% believe that GenAI is a powerful force for business transformation.
 

AI is seen as being able to help Thai businesses 

Question: What are the top three areas, if any, where you think that AI will significantly help the business?
 

_{Source: PwC’s Global NextGen Survey 2024 – Thailand Report}

Thai NextGen see that GenAI adoption could drive innovation within the family business. Almost half (48%) believe that leveraging AI will help their business achieve growth, while 42% see it as a means of adopting new technologies and 33% believe it will lead to upskilling the capabilities of their workforce.
 

Most Thai family businesses have not yet looked into GenAI

Question: How would you describe your family business’s current level of adoption of generative AI?
 

_{Source: PwC’s Global NextGen Survey 2024 – Thailand Report}

Despite these positive sentiments, Thai NextGen feel that their family businesses are struggling to keep up with evolving technology and have doubts about the current generation of leaders’ understanding of AI technology. There appears to be a disconnect between personal interests, skills and the family business’s approach to AI technology.

Interestingly, 58% of Thai family businesses have either prohibited the use of the GenAI or have not started to explore the technology, slightly higher than the 49% global average. While one in three Thai family businesses are in the early stages of exploring AI, only 3% currently have a person or team in the company directly responsible for GenAI.
 

Only 6% of Thai NextGen are very knowledgeable about GenAI

Question: How knowledgeable would you say the following are about generative AI?
 

_{Source: PwC’s Global NextGen Survey 2024 – Thailand Report}

What’s more, although close to half of Thai NextGen say they are knowledgeable about GenAI, only 6% claim to be highly knowledgeable while 21% admit to having no knowledge at all. This indicates that there may be a mismatch between the perceived level of knowledge and actual personal engagement with GenAI. 

This reflects a segment of Thai NextGen who recognise AI’s potential and are actively exploring its applications and benefits for their businesses. However, it also suggests that there is still a considerable journey ahead in terms of widespread adoption and implementation of AI across organisations.
 

Thai NextGen see fewer risks associated with AI compared to global

Question: To what extent do you agree or disagree that generative AI is likely to increase the following in your company in the next 12 months?
 

_{Source: PwC’s Global NextGen Survey 2024 – Thailand Report}

While there is optimism about the benefits of AI, such as increased operational efficiencies, improved decision making, and increased employee productivity, there are also concerns. For example, 30% of Thai NextGen members believe that GenAI is likely to increase the spread of misinformation, followed by concerns about legal liabilities (27%) and cybersecurity risks (27%). These figures are notably lower than global NextGen, especially on cybersecurity risks (48%).