This sense of fear has been widespread in society for as long as technological innovations have been improving our lives. It’s worth noting that people feared the invention of all sorts of transport, from cars to trains to airplanes; they feared assembly lines would wreak havoc on employment; and more recently, during the run-up to Y2K, some doomsayers worried computer-crashes worldwide would lead to mayhem and destruction.

The reality is that innovation and technological advancements do lead to disruption and job displacement. Are we to stop evolving or innovating? No, in fact, the solution is to anticipate the disruption and proactively build strategies to develop the skills and jobs that will be needed in the future.

This mindset must remain front and center with all business executives. Many corporate leaders are considering incorporating AI across their enterprises not only to increase efficiencies and reduce costs, but more importantly, as an opportunity to completely reimagine their businesses and create entirely new business models and processes. But with the advent of AI in business, executives need to think about something we call “collaborative intelligence,” or how they think about the relationship between employees and machines.

This idea isn’t about humans versus machines. Nor should one think of AI as trying to build robots with superhuman capabilities. In fact, AI is about humans plus machines working together to do things differently and to also do different things. Think of it like creating Marvel’s Iron Man versus building a cyborg like the Terminator.

But even Tony Stark’s Iron Man can be seen as a cautionary tale. At times, in both the comic and the movies, he goes overboard with technology without thinking of the social ramifications. Executives cannot afford to make similar mistakes and must recognize that AI needs to be anchored in a strong set of corporate values and compliance – as any misuse could be in violation of employment and data privacy rules.

Executives must also be careful to ensure data veracity and data privacy. They must manage data and algorithms to ensure both are human-centric, fair, accountable, transparent and honest – the core principles of Responsible AI. Indeed, fear of loss of control – that the power of AI is left in the hands of a few digital elites and the rest of the world is left at its mercy, is another standard theme voiced by critics and which has played out in sci-fi movies.

Levering AI and kicking-off a transformation of your business without thinking through the social impacts on your staff and customers can put your company’s reputation, brand and operations at risk.

So, what red flags must executives consider?

They need to first ask questions about the AI itself, to make sure there aren’t design/data biases included in it. Many of these issues can be addressed by ensuring transparency is in place and a policy of using people with machines together.

Executives will also need to think through the societal impact of the AI they are using. Will there be loss of jobs? Or job creation? Is this good for society or to its detriment?

They also need to clearly show that ethics are at the forefront of their thinking – this is particularly important with regards to data privacy. Recent events seem to be pushing, at least in the western world, toward individual ownership of data regulated by commercial law. Robust dedication to corporate responsibility will be a differentiator. Consider how in Europe, the General Data Protection Regulation (GDPR), which aims to give individuals more control over their data, has gone into effect on 25 May. Under GDPR, individuals will have to give explicit consent to companies gathering and processing information, which means we’ll all be seeing many more “click to proceed” or “do you agree?” windows popping up in the future—if you have not already received a few of these. However, in an environment of fear, people will gravitate to companies they believe are taking data privacy seriously not because they are required to, but because the company believes in its value.

Used ethically, AI can be more uplifting and not creepy. It’s a transformational business tool that will change how companies operate and do business. But it shouldn’t just be viewed as a means for executives to grow their businesses. They should look at AI as a way to enhance human capabilities – making people better and happier in their jobs, and resulting in customers being more satisfied with services and confident in a company’s brand.

Contributed by GIANFRANCO CASATI, Accenture’s Group Chief Executive for Growth Markets and NONTAWAT POOMCHUSRI, Country Managing Director and Financial Services Lead, Accenture in Thailand

Against the backdrop of an escalating row between the two economic superpowers, the chief of the Bank of Thailand (BOT) said the uncertainties presented risks and opportunities for Thai exporters.

For the May trade figure, exports worth US$22.257 billion marked the 15th straight month of gains, the Ministry of Commerce’s Trade Policy and Strategy Office (TPSO) reported.

Imports grew 11.7 per cent year on year in the month to $21.053 billion. As a result, Thailand achieved a trade surplus of $1.204 billion.

For the first five months of this year, exports increased 11.6 per cent to $104.032 billion and imports advanced 16.6 per cent to $102.155 billion. For the period, the country’s trade was in a surplus of $1.877 billion.

Manufacturing shipments rose for a 15th straight month in May, led by automobiles and parts, computers, plastic pellets, chemicals and oil products.

For the month, agricultural and agro-industry shipments edged up 1.5 per cent, led by rice, frozen and processed chicken and canned tuna.

For this year, the value of exports is expected to come in close to the target rate of 8 per cent growth. The optimism is fuelled by increased distribution in new markets in line with an expansion of the global economy, despite the overhang of risk of fluctuations in shipments arising from the retaliatory trade measures exchanged between China and the US, the TPSO said.

The US economy has continued to expand and the country’s low unemployment rate could boost Americans’ spending, while the euro zone countries are expected to see satisfactory growth, particularly in the labour market, the office said.

China is expected to enjoy sustained economic expansion, driven by domestic consumption and high export growth – particularly in automobiles and electronics products – and this could benefit Thailand with its role in the Chinese supply chains, it said.

Similarly, Japan’s exports of technology-related products continued to expand, which could also help support Thai exports, the TPSO said.

The global crude price is estimated to drop slightly as markets expect oil producers to raise oil production capacity in response to lower oil supplies and the contribution from US producers is expected to rise, the TPSO said.

Meanwhile, demand for oil continues to grow in line with the global economic expansion, which could drive up crude oil prices in the long term. Prices of agricultural products and oil-related products are expected to follow suit, it said.

On the trade row front, Veerathai Santiprabhob, the governor of the Bank of Thailand (BOT), yesterday expressed his concerns over the impact of the China-US dispute on Thai exports and investment, given both countries threats to launch retaliatory actions against each other in the form of high tariffs on imports.

The trade policy of large countries such as the United States could have a significant impact on the Thai economy, he said on the sidelines of the National Directors Conference 2018 hosted by the Thai Institute of Directors (IOD).

Increased tariffs on imports could distort the market and have an impact on Thailand, even though the country has not been targeted by the US government, he said.

Manufacturers based in Thailand also export intermediate electronics goods to China for assembly before being exported to the US market.

A trade war could disrupt global production chains and harm investor confidence and this would hurt private investment, Veerathai warned.

However, he said there may be also be opportunities for some manufacturers that could produce substitute goods and export them to the US, in the event of the US following through with its announcements of higher taxes on Chinese goods.

As for currencies, Veerathai said that the baht has weakened, but not by much when compared with the currencies of other emerging markets.

The currencies of some countries in Latin America have dropped sharply, in the range of 15-30 per cent, he pointed out. “The baht cannot go against market forces but the central bank can act to avoid large swings in its value,” Veerathai said.

The baht and other emerging market currencies were under pressure, amid the US Federal Reserve’s policy to increase its benchmark interest rate.

The baht was trading at 31.70 per to the US dollar at the beginning of May and had weakened to Bt32.7 on Wednesday, according to the BOT. In terms of technology, Bandid Nijathaworn, president and chief executive officer of the IOD, said Thai firms have to adapt themselves to the rapid changes in digital technology in order to compete successfully in the market.

Directors of companies and management teams have a key role in leading companies and they should put in place data analysis centres in order to monitor business conditions and ensure they can start the adaptation process, he said.

Based on what it calls a MICE ecosystem strategy – for meetings, incentives, conferences and exhibitions – TCEB is showcasing new concepts to attract qualified high-level buyers.

Nichapa Yoswee, TCEB’s vice president of business, said that although the short-haul market – covering countries such as China, India and Singapore – remains the key for the MI (meetings and incentives) sector with strong growth, the strong returns from long-haul buyers are expected to drive growth in the industry. The long-haul market is on the rise because business travellers, especially in Europe, are looking for the longer destinations outside the European region.

MI is the biggest contributor for the country’s MICE industry, representing about 50 per cent of the total revenue. In the first half of the 2018 fiscal year (October 2017-March 2018), Thailand welcomed 150,849 meeting travellers worldwide, up 11.8 per cent from the same period last year. The number of incentive travellers rose by 21.63 per cent to 176,005. Among them were 101,514 MICE travellers from the long-haul markets, generating Bt7.94 billion in revenue.

After success in the first and second editions that highlighted the Chinese and Indian markets, respectively, this year TIME is focusing on the long-haul markets with new event concepts and promotional campaigns.

TIME is described as an annual knowledge platform to all stakeholders related to the meetings and incentives industry. It comprises three key activities: Knowledge Exchange, to help participants learn about the target markets; Business Exchange, to build networking; and Experience Exchange, to create hand-on experience for the buyers through a familiarisation trip.

The Knowledge Exchange was organised yesterday under a concept of “Element of Thailand” offering the participants the opportunity to gain market insights via main conference and three breakout sessions for each market. Some of keynote speakers included Phillip Eldsvold, president-elect, SITE (Society for Incentive Travel Excellence) and Megg Withinton, managing partner of Intellective Group, North America.

Business Exchange was redesigned from the table-top session to be Social Club allowing 30 buyers from long-haul markets to meet Thai suppliers in four different settings that demonstrated Thailand’s meeting destinations – Beach, Nature, Culture, and City.

While Experience Exchange is being organised under the theme “Global Exchange for Change” until tomorrow in Koh Samui, a preferred choice for small and medium-sized meeting groups.

Nichapa said that through the MICE ecosystem platform, the TCEB is reinforcing the MI industry as an enabler of growth in target industry in line with the Thailand 4.0 policy – including the automotive, IT, insurance, consumer products, and direct-selling industries. The MICE ecosystem would enable all parties concerned to integrate efforts into the same direction. In addition to MICE Cities (Bangkok, Pattaya, Chiang Mai, Phuket, Khon Kaen), it is aimed at increasing the number of meetings in the second-tier MICE destinations such as in the Eastern Economic Corridor (Chon Buri, Chachoengsao and Rayong), Hua Hin in Prachuap Khiri Khan, Chiang Mai, Chiang Rai and Samui Island in Surat Thani.

In the 2018 fiscal year, Thailand is expected to welcome 1,327,000 business travellers generating the total revenue of Bt124 billion. The number of business travellers coming from MI sector is estimated to grow by 7 per cent to 569,000. While the ranks of long-haul travellers will grow by 5 per cent compared to 184,701 travellers in 2017 fiscal year.

The top 10 long-haul source market in 2017 were America, Australia, France, the UK, Germany, Italy, Netherlands, Sweden, Spain and Belgium.

Protectionism stirred by the trade disputes between the United States and China remains the biggest risk to the Thai economy and was partly responsible for the Monetary Policy Committee (MPC) keeping the policy rate unchanged to further accommodate economic growth, the central bank said yesterday.

The majority of the MPC members yesterday voted to keep the policy rate at 1.5 per cent, as they were worried about the impact of trade tensions between the US and China on the local economy, said Jaturong Jantarangs, assistant governor of the Bank of Thailand (BOT).

“The members of the MPC are concerned about trade protectionism as the trade tension has intensified over the past few days, suggesting it is unlikely to end soon,” he said, referring to retaliatory tariffs between the world’s largest economies.

“The trade row has increased the uncertainties for Thailand’s economy because it could have a negative impact on Thai exports, businesses, employment, consumption and investment,” said Jaturong.

He said five members of MPC voted yesterday to keep the rate unchanged while one member voted to increase the rate by 0.25 percentage points.

“The threat of a trade war is among other reasons for keeping the rate low in order to facilitate growth,” he said.

Current capital outflows from Thailand have not yet negatively impacted real economic sectors, as businesses are still able to raise funds at a low cost, but only a few companies pay slightly higher rates to issue bonds, he said.

The strengthening of the US dollar caused by the US rate hike has recently led to capital outflows from emerging markets including Thailand, he said, referring to foreign investors selling Thai stocks and bonds.

The capital outflow has led to the weakening of the baht against the US dollar.

Year-to-date, the baht is at more or less at the same level as at the end of last year, he said, referring to the baht now weakening to more than Bt32 per dollar.

The baht had appreciated about 10 per cent last year and continued to rise about 3-4 per cent earlier this year, something exporters had complained about.

The central bank yesterday also upgraded the economic growth forecast for the year to 4.4, up from 4.1 per cent forecast in March, he said Consumption has expanded but better economic conditions have not yet increased household revenue and employment across the board. And household debt remains high, he warned.

Private investment continued to expand partly because it was driven by public investment projects, he said. “The Eastern Economic Corridor [EEC] Initiative would further boost public investment but we have to see whether the projects suffer any delays,” he said.

Export is expected to grow at 9 per cent this year up from 7 per cent projected earlier, Jaturong added.

Prinn Panitchpakdi, managing director at CLSA Securities Thailand, said foreign institutional investors were more concerned about a potential escalation towards trade war and central banks around the world were tightening too much too soon.

The strength of the US dollar coupled with the oil price trend does not help emerging markets, he said.

A clearer Thai political and election road map, the timely execution of public infrastructure investments, and progress on the EEC would place Thailand in a more favourable position compared to other Asean markets but the bigger global picture needs to get brighter first if foreigners are to slow down their selling, he noted.

“Most foreign investors appreciate an improvement in the corporate governance scorecard for most of the Thai listed firms but there remains some room for improvement especially with regard to genuine board independence, anti-corruption measures, and enforcement of competition law,” Prinn added.

Meanwhile, Soraphol Tulayasathien, director of Economic Stability Analysis Division at the Finance Ministry’s Fiscal Policy Office, said that the current fall in stock values were a result of short-term volatility as the market was reacting to the threat of a trade war.

Soraphol said the Thai economy was resilient to shoulder the impact of a volatile financial market. This is because the country has strong international reserves of US$212 billion (Bt6.9 trillion), equivalent to 3.6 times short-term foreign debt or 9.8 times the monthly import value, he said.

Thailand has also diversified its export markets, and was not dependent only on China and the US.

Soraphol said the prospects for exports and tourism looked promising.

He did not expect the current bout of trade retaliation to escalate into a full-blown trade war and noted that most stock markets in Asia and the Stock Exchange of Thailand in yesterday’s trade had recovered some of previous day’s large losses. He expected China and the US to reach a compromise.

Lee Hyuk, secretary general of the Asean-Korea Centre, said in an interview that Myanmar must urgently create a better investment climate to succeed in encouraging more South Korean businesses to invest in the country. “Korean investors feel that the time is not right for them to invest here,” he said, citing the fierce competition in the region.

“There are many challenges and on top of that, all the Asean member states are really competing fiercely to attract FDI,” he said, referring to foreign direct investment. “You have many competitors around.” He said that many Korean businesspeople who came to Myanmar to explore ways of investing in the country found that the investment environment was not as good as they had expected.

Lee urged the Myanmar authorities to engage more with Korean businesses and to conduct a survey on how other Asean member states are trying to attract as much foreign investment as possible.

“Government agencies need to be more enthusiastic about attracting FDI. They need to visit Korea and other countries to talk to authorities as well as companies, and come up with good conditions for the companies that are interested in doing business here,” he said.

He considers the lack of infrastructure, insufficient power supply, higher wages, and expensive land prices as major challenges that may deter Korean investors’ interest in Myanmar.

“If you are to operate a manufacturing factory, for example, electronic appliances or textiles, there should be zero chance of electricity blackouts. You should also see a consistency in government policies, particularly investment policies,” Lee said.

“Provided that the government recently enacted the new company law and investment law, the laws are in place. But enforcement of these laws is also important.

“The price of renting apartments is very, very high. It is much higher than even in Seoul, Hanoi or Ho Chi Minh – nearly double. If the living conditions stay like this, it will be very, very difficult for foreign businesspeople to live a comfortable life here. Even a small apartment costs much higher than in many other countries.” He called on the government to urgently address the high prices for land by building more houses and apartments.

“You need to be more competitive. At least you need to be competitive enough in some sectors, including garments, to attract Korean investments,” he said.

The key to unlocking Myanmar’s potential is the need for low wages, Lee said. He also stressed the need for more vocational schools and training courses to produce a skilled workforce.

He cited the example of Vietnam, which has continued to be the most attractive investment destination in Asean by undertaking “bold reforms”, such as a decision to reduce the extent of increases in the minimum wage over the past few years and by offering special incentives to big companies, including Samsung Electronics.

Despite the challenges, Lee believes Korean investors’ interest in Myanmar is still there. He considers manufacturing, construction, electricity generation, services, retail, garments and education as the most promising sectors to attract Korean investment.

He expressed the hope that the trade mission to promote Korean investment in Myanmar will bear fruit. Top executives from 11 companies, including AmorePacific Group and Core Electronics Co, joined the trip. The Korean delegation visited the Thilawa special economic zone and called in on other companies on Tuesday. They also attended the Myanmar-Korea Investment Promotion Seminar yesterday.

“When we visited Thilawa yesterday, I sensed a great potential that Myanmar could be a great investment destination for Korean companies,” Lee said. “But it took us about two hours to get there, though it is less than 30 kilometres from Yangon. It is a problem.”