Thai family firms face multiple challenges despite strategic shifts to the digital era, while AI adoption remains below the global average
PwC Thailand reveals in its latest survey that Thai family businesses are under pressure from economic and geopolitical volatility, with only 22% of executives reporting double-digit sales growthdown from 30% two years prior.
Meanwhile, 28% reported a drop in sales, doubling from 14% in 2023. This reflects the challenges of adapting to the digital era and implementing artificial intelligence (AI), which remains at a low level, as well as insufficient preparedness for transformative innovationfactors that could constrain future growth potential.
The 12th Global Family Business Survey – Thailand Snapshot, part of PwC’s global study with the John L. Ward Center for Family Enterprises at the Kellogg School of Management, Northwestern University, surveyed 1,325 family business leaders across 62 countries and territories including 36 from Thailand.
The findings highlight that Thai family businesses are affected by three megatrends: economic uncertainty (69%), changing consumer behaviours and expectations (53%), and geopolitical risks from trade wars and domestic stability (44%).
Amornrat Pearmpoonvatanasuk, Family Business Leader and Assurance Partner at PwC Thailand, said:
“Thai family businesses are feeling the effects of major global megatrends, including economic uncertainty, geopolitical risks, changes in trade, and the shifting demands of consumers. While some businesses have continued to achieve double-digit growth last year, many have seen their sales take a hit. Adapting smartly and strategically to these changes will be key to emerging stronger in the years ahead.”
The latest report indicates that most Thai family businesses continue to pursue steady, gradual growth within a conservative framework, showing limited urgency to transform their operations and drive innovation. This contrasts with global trends, where businesses showed a proactive stance toward reinvention (with 3% globally undertaking fully reinvent approach).
Only 11% of Thai family businesses reported a strong commitment to innovation and a willingness to revisit and revise their management strategies.
Pace of innovation and AI adoption slows among Thai family business
Businesses worldwide recognise innovation and AI as key drivers of growth and success. Still, Thai family businesses appear far less responsive in adopting technology than their global peers. Only 36% of Thai family businesses see technological advancement as vital to driving business growth, in stark contrast to 65% of family businesses globally.
Furthermore, fewer than one-third (33%) believe that digital transformation and automation will create growth opportunities (versus 64% globally), and only 22% have invested in digital and AI initiatives, compared to 39% worldwide. Currently, just 3% of Thai family businesses are experimenting with or using AI or generative AI (GenAI) within their organisations.
Agility and trust: The keys to success
Thai family businesses that can swiftly adapt to changing market conditions and evolving customer demands tend to see robust growth and achieve significant commercial results, with 44% of these businesses reporting double-digit sales growth.
However, only 25% of Thai family businesses rate themselves as agile in responding to change, compared to 34% globally, the survey data showed.
Regarding the importance placed on reputation and trust, the survey found that 58% of Thai family business leaders consider maintaining the family’s business reputation to be ‘very important’ (compared to 78% globally), and 44% believe their business is more trusted and reputable in the eyes of customers, employees, and partners than non-family businesses (versus 74% globally). Meanwhile, 47% acknowledged experiencing occasional family conflicts, compared to 38% globally.
Recommendations for the future: Strategic adaptation for sustainability
As Thai family businesses navigate an era marked by rapid technological change and ongoing economic uncertainty, industry leaders are calling for a more agile approach to organisational structure, alongside targeted investment in innovation, AI, and digital transformation.
Amornrat emphasised the importance of setting clear strategic goals and protecting reputation to foster trust and unlock new avenues for long-term success.
“In a world shaped by fast-moving technology and shifting market trends, Thai family businesses must go beyond traditional business models. Building greater organisational agility is the first stepbusinesses should then follow with decisive investments in AI and digital technologies to drive sustained value.
“Above all, establishing transparent goals and nurturing trust among family members, employees, and stakeholders will help protect reputation and strengthen the business for the future. By leading these charge, Thai family firms will be well-positioned to manage change confidently and capture new opportunities in an increasingly competitive global landscape,” she said.