Economic Perspective · AI and the Economy

AI in Thailand: Will Easier Work Weaken the Incentive to Learn?

Series AI and the Economy, Issue 1 Draws on peer-reviewed studies, Thai and UN agency data, and human capital theory Approach argued economic analysis, not a primary-data report

AI could improve measured performance in Thailand while weakening the incentive to develop the skills behind it. That is the hypothesis I want to examine: where businesses and educational institutions reward acceptable output but give little additional recognition to independent understanding, making completion easier may reduce investment in learning. The opposite is also possible. AI could make learning sufficiently accessible and useful that people choose to invest more. The outcome depends on the rewards, opportunities and expectations surrounding its use.

The Thai context

A measurement problem, not just an adoption one

In Thailand, this is becoming a practical question. ETDA's 2024 assessment with NSTDA received responses from 580 public and private organisations across ten target sectors, from 3,758 contacted. Among respondents, 17.8% reported using AI and 73.3% planned to do so. Improving production or service efficiency was among the main adoption objectives, while skills, data quality and funding were identified as barriers to generative AI use. The survey offers a dated snapshot rather than a current census, but it shows organisations pursuing efficiency while already recognising constraints around capability (ETDA, 2024).

Those ambitions create a measurement problem. Consider a hypothetical reservations team in Phuket using AI to draft replies in several languages. Faster responses could improve service and free staff to handle complicated requests. Yet the same output could conceal gaps in understanding cancellation conditions, recognising a misleading translation or deciding when a request needs escalation. The employee can look more capable without becoming more capable, while the business may still be better off. That is what makes the problem interesting.

Theory

What economic theory adds

Economic theory helps explain why people might respond differently to the same technology. Human capital theory treats learning as an investment, with present costs and expected future benefits. Becker's analysis of on-the-job training includes the time, effort and resources used to raise future productivity, all of which could otherwise contribute to current production (Becker, 1962, pp. 11–13). Whether further learning is worthwhile depends on what the person expects to gain from it.

AI can change both sides of that calculation. A worker who can obtain useful explanations during a quiet period may face a lower cost of learning than someone who needs formal instruction. However, if the tool supplies everything their role rewards, the additional return from acquiring the underlying skill may also fall. Expertise will still be worth developing where it improves decisions, creates opportunities or provides something the individual values beyond completing the immediate task.

Workplace rewards matter because they influence which uses of time appear worthwhile. Holmström and Milgrom's theoretical model explains how incentives can direct attention towards easily measured activities and away from valuable work that is harder to assess when those activities compete for effort. Rewarding quantity can create problems where quality competes for the same attention. A performance measure should therefore be judged partly by what it leaves out (Holmström and Milgrom, 1991).

This produces two possible responses. If an employee receives the relevant reward once a fixed target is met, easier completion may encourage them to stop earlier. If every additional completed task brings a benefit, they may instead increase output. Learning and checking could receive less attention where they compete for time and bring insufficient reward. More production could also provide useful practice, while finishing early could create time for study. The direction is not determined by AI alone.

Targets may also change. A business could respond to faster completion by expecting better personalisation, more complex work or faster resolution of unusual cases. Competition could increase the value of judgement rather than reduce it. The hypothesis is therefore strongest where the required standard remains fixed, underlying capability is difficult to observe and further learning brings little additional return.

Evidence

What the international evidence shows

International evidence shows why immediate performance and learning need separate assessment. Bastani and colleagues studied nearly 1,000 high-school mathematics students in Turkey. Two forms of AI assistance improved practice performance, but students using the less constrained GPT Base subsequently scored 17% lower relative to the control group when assistance was removed. A structured GPT Tutor largely avoided that disadvantage, without establishing a positive unaided-exam gain (Bastani et al., 2025).

The important finding is not simply that one AI group performed worse. The two tools produced different later outcomes despite both improving assisted practice. Guardrails helped avoid the measured learning loss associated with the less constrained tool. At the same time, the experiment changed the assistance available rather than the reward for learning, so it does not confirm the incentive hypothesis. Students may have reduced their effort, used fewer productive mental steps or misjudged how much they understood. The result establishes a risk that completed work can conceal, but it does not identify one explanation for it.

Evidence of learning gains prevents the argument from becoming one-sided. Kestin and colleagues compared a structured AI tutor with active learning in university physics. Students using the tutor achieved higher post-test scores, with a median learning time of 49 minutes against an assumed 60 minutes of classroom learning. The intervention combined prepared solutions, structured activities and personalised feedback (Kestin et al., 2025).

The comparison requires care because one time figure was measured and the other assumed, while the assessments were short term and do not establish lasting mastery. Even so, the result demonstrates that time saved can be compatible with learning more. Confusion, delayed feedback and unsuitable pacing consume time without necessarily providing useful practice. If AI removes those costs, a capability previously considered too difficult or expensive to acquire could become worth pursuing.

Together, the education studies lead to a more useful conclusion than the claim that comfort weakens development. Difficulty has value when overcoming it develops something useful. What matters is whether the design of assistance preserves the thinking, practice and feedback needed to apply knowledge beyond the immediate task.

Workplace research adds a different perspective. Brynjolfsson, Li and Raymond studied the staggered introduction of AI assistance among 5,172 customer-support agents. Their final published analysis reports a 15% average increase in issues resolved per hour, with larger gains among less-experienced and lower-performing workers. The most experienced and highest-performing workers gained less, with small declines in some quality measures. The authors also report evidence of durable learning: productivity gains persisted during outages, when AI recommendations were unavailable, and agents with two months of tenure performed as well as agents with six months of tenure once they had access to the tool (Brynjolfsson, Li and Raymond, 2025).

This study still measures productivity and inferred learning rather than directly testing reward-driven underinvestment, and its quasi-experimental interpretation depends on assumptions about the rollout. Even so, it complicates a simple reading of the incentive hypothesis. Where Bastani's unguided tool left students worse off once assistance was removed, this workplace tool appears to have built durable capability alongside the immediate output gain. AI can raise the performance of less-experienced workers towards the existing standard, making expertise harder to infer from routine output. A smaller measured gain among experts does not make their knowledge unimportant. Its value may appear in unusual cases, error detection, customer judgement or the knowledge embedded in the AI system itself.

The underlying concern predates generative AI. Bainbridge observed that automation can leave people responsible for unusual failures while reducing the routine practice that prepares them to respond (Bainbridge, 1983). That is a loss of practice rather than a reduced incentive to learn, but the two effects could reinforce each other.

Application

What this means for Thailand

For Thailand, these international studies provide mechanisms to investigate rather than percentages to import. A hotel, a school and a trading business differ in what counts as success, how mistakes are detected and which skills remain valuable. The practical question is whether the outcome being measured captures the capability the organisation still needs.

Thailand's own readiness assessment highlights the gap between providing training and demonstrating its value. UNESCO's 2025 country report, developed with Thai institutions, notes limited reporting on the quality, effectiveness and outcomes of AI training initiatives. It also identifies uneven participation in upskilling and reskilling, particularly among SME and informal workers (UNESCO, 2025, pp. 55, 70–71). These findings do not test the incentive hypothesis, but they show why access to a tool cannot be treated as evidence of developed capability.

Access to learning also involves time, support and a credible reason to improve. Consider two employees with the same AI subscription. One receives time to practise, feedback from an experienced colleague and a route to greater responsibility. The other faces immediate output targets and must study outside paid hours. Their choices could diverge without any difference in intelligence or ambition. Affordable AI does not automatically provide affordable time or a worthwhile return from learning.

Employers and employees may also disagree over who should pay for development. In Becker's competitive model, workers finance transferable training because other employers can bid away the return. Acemoglu and Pischke explain why firms may still invest when training raises productivity more than wages, allowing the employer to retain part of the gain (Acemoglu and Pischke, 1998). Portability alone does not determine whether a Thai business should develop its staff. The answer depends on how productivity, pay, retention and opportunity change together.

The strongest objection remains that learning less of a particular skill can be sensible. A reliable tool may reduce the value of routine execution while allowing someone to develop more useful capabilities. Time saved may also improve life outside work. The economic concern begins where a person, business or institution gives up a capability whose expected benefit still exceeds the cost of maintaining it.

That concern becomes more credible when the organisation still depends on the skill during unusual or consequential cases, assisted output makes the skill difficult to observe, rewards are tied mainly to visible output and people receive too little opportunity to practise. It becomes stronger again when the consequences fall partly on customers, colleagues or future learners rather than the person deciding whether to invest.

For Thai businesses and educational institutions, the practical implication is to assess capability alongside completion. This does not require every task to be performed without AI. It requires clarity about which outcomes still depend on independent judgement. Can someone recognise an incorrect answer, explain a consequential decision and apply their understanding to an unfamiliar case? Has AI freed time for development, or has every saved minute been converted into a higher output target?

Conclusion

My assessment

My assessment is that AI creates a conditional risk of underinvestment in learning alongside a real opportunity to make learning more accessible. The evidence shows that assisted performance can conceal weaker later results, that structured support can improve learning and that less-experienced workers can obtain large immediate productivity gains. It does not show that AI is already weakening incentives to learn in Thailand.

The risk appears where an organisation rewards the output AI has made easy while continuing to depend on a capability it no longer observes, practises or rewards.

The defensible conclusion is more specific. The risk appears where an organisation rewards the output AI has made easy while continuing to depend on a capability it no longer observes, practises or rewards. Thailand's adoption ambitions make that question relevant now, while the limited local evidence gives businesses, educators and researchers good reason to examine it more closely.

The next question is who benefits when progress occurs. If AI makes expertise cheaper to acquire and services easier to produce, the gains could appear as higher margins, better pay, lower prices, improved quality or more free time. How they are distributed will depend on competition and bargaining power as well as technology. That is the next issue in examining AI's economic and social consequences for Thailand.

References

Sources cited

  1. Acemoglu, D. and Pischke, J.-S. (1998) ‘Beyond Becker: Training in imperfect labor markets’, NBER Working Paper, 6740. Full working paper.
  2. Bainbridge, L. (1983) ‘Ironies of automation’, Automatica, 19(6), pp. 775–779. doi:10.1016/0005-1098(83)90046-8.
  3. Bastani, H., Bastani, O., Sungu, A., Ge, H., Kabakçı, Ö. and Mariman, R. (2025) ‘Generative AI without guardrails can harm learning: Evidence from high school mathematics’, Proceedings of the National Academy of Sciences, 122(26), e2422633122. doi:10.1073/pnas.2422633122. Associated affiliation correction: PNAS, 122(34), e2518204122, doi:10.1073/pnas.2518204122.
  4. Becker, G.S. (1962) ‘Investment in human capital: A theoretical analysis’, Journal of Political Economy, 70(5), Part 2, pp. 9–49. NBER-hosted full text.
  5. Brynjolfsson, E., Li, D. and Raymond, L. (2025) ‘Generative AI at work’, The Quarterly Journal of Economics, 140(2), pp. 889–942. doi:10.1093/qje/qjae044.
  6. Electronic Transactions Development Agency (ETDA) (2024) ‘ETDA and NSTDA release findings on organisational AI adoption readiness in 2024’ [English description of Thai-language title], 15 October. Available online.
  7. Holmström, B. and Milgrom, P. (1991) ‘Multitask principal-agent analyses: Incentive contracts, asset ownership, and job design’, Journal of Law, Economics, & Organization, 7, special issue, pp. 24–52. University-hosted paper.
  8. Kestin, G., Miller, K., Klales, A., Milbourne, T. and Ponti, G. (2025) ‘AI tutoring outperforms in-class active learning: an RCT introducing a novel research-based design in an authentic educational setting’, Scientific Reports, 15, 17458. doi:10.1038/s41598-025-97652-6.
  9. UNESCO (2025) Thailand: Artificial Intelligence Readiness Assessment Report. Paris: UNESCO. TDRI-hosted report.
Disclosure. This article was developed with AI assistance for source discovery, research organisation and drafting. I set the research question, discussed the studies and directed the interpretation. Material claims were checked against the cited sources during drafting. Responsibility for the final argument and any remaining errors is mine.
Get started

Weighing up AI adoption for your business?

ASA can help you think through what a tool changes about how your team works, not only what it produces.