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AI Transitions to Profit Engine as Investment Surges; Concerns Over Bubble Risks Grow

AI investments soar to over $400 billion by 2026, with Agentic AI projected to revolutionize operations, while bubble risks and competition grow amid rapid advancements.

In a rapidly evolving landscape, artificial intelligence (AI) is poised to redefine several key business sectors, with significant implications for telecommunications, energy, and public services. Providers in the telecommunications sector are increasingly looking to incorporate Agentic AI to enhance network management, operational support systems, and customer experiences, facilitating quicker problem resolution. Concurrently, AI ecosystems are transforming data into real-time insights, while cross-industry collaboration platforms are paving the way for new revenue streams.

In the energy sector, AI is expected to expedite the transition to smarter, more resilient systems, thereby improving grid stability and facilitating the integration of renewable energy sources. The concept of “Green AI” is emerging, where AI technologies are optimised to reduce energy consumption and carbon emissions by improving hardware efficiency, workload management, and cooling systems. This self-adapting infrastructure will encompass everything from chips and operating systems to carbon-emissions tracking, allowing AI to generate value while minimizing energy burdens.

For public services, AI is set to enhance productivity and agility, enabling access to services in finance, agriculture, public health, and education at appropriate pricing aligned with local contexts. By 2026, government agencies are anticipated to prioritise responsible, safe, ethical, and transparent AI implementations, underpinning strong governance frameworks to mitigate risks and foster societal trust.

IBM has outlined five AI technology trends that are likely to propel organisations across these sectors. The Internet of AI will see generative and Agentic AI become integral to organisational infrastructure, with a shift toward decentralised data systems that emphasise privacy. AI will increasingly learn from smartphones, IoT devices, and edge computing, leveraging persistent memory and on-device processing.

In this context, AI will serve as a powerful growth accelerator, moving beyond mere efficiency to create competitive differentiation, reshape business models, and establish new products and services. This paradigm shift positions AI as an investment rather than merely a cost centre, unlocking sustainable returns. Furthermore, organisations investing in AI ethics are likely to see superior returns on investment over time.

The rise of Sovereign AI will complement global AI models, as localised frameworks evolve to address data sovereignty, language diversity, cultural contexts, and national security considerations. Meanwhile, advancements in quantum computing may accelerate AI model training and enhance workflows including algorithms, error correction, and resource allocation.

According to industry experts, the most notable development in the Asia-Pacific region is the cross-pollination of AI innovations across various sectors. Joohee noted that advancements in telecommunications are increasingly influencing manufacturing, which, in turn, is impacting the energy sector. This synergy is helping organisations in the region to leapfrog traditional development cycles, with leaders harnessing AI intentionally to focus on measurable growth.

The transition from Generative AI, which assists in creative tasks, to Agentic AI, capable of planning and executing complex tasks independently, marks a significant shift in capabilities. As Salesforce indicates, Thailand’s AI market is on an impressive growth trajectory, with forecasts suggesting an annual growth rate of 32.33%, potentially reaching approximately 233 billion baht by 2031. The advent of Agentic AI presents substantial opportunities for Thai businesses to enhance operational efficiency and customer experience.

However, the landscape is changing rapidly, with AI evolving from a strategic advantage to a necessary cost for survival. Organisations that fail to invest in AI risk falling behind in speed, cost-efficiency, and decision-making capabilities. A Gartner survey indicates that by 2026, 80% of chief information officers in government entities will likely increase GenAI budgets by 38% compared to the previous year, reflecting the urgency to integrate AI for faster public service delivery.

As competition intensifies, Dr. Thanachart Numnonda points out that the AI market landscape is shifting. The enduring popularity of ChatGPT continues to dominate discussions, yet competition is heating up with Google’s Gemini application gaining traction. Analysts suggest that Gemini 3.0 will likely excel in Thai language processing due to Google’s extensive data resources. In parallel, homegrown models like Typhoon are carving out niches for specialised tasks that have yet to be fully addressed by foreign models.

Amid this competitive environment, the technology sector is forecasted to invest over $400 billion in 2026 to secure leadership positions. The rapid development cycles, previously spanning six to seven months, are expected to condense to mere weeks as companies strive to innovate and release superior products. The focus will increasingly be on AI agents capable of complex tasks, from automatic code writing to intricate documentation management.

Concerns over a potential AI bubble linger, as substantial investments continue to flow into the sector without clear assurances of returns. The shift of economic activities from human operations to automated systems raises both opportunities and risks, with projections of overall costs reaching trillions, funded by venture capital and innovative financing structures.

As the global AI battlefield becomes increasingly competitive, China’s emergence as a significant player marks a pivotal moment. With the launch of the DeepSeek chatbot, China has chosen a path focused on cost-effective AI solutions, countering US sanctions on advanced chips. This strategic pivot highlights the competition evolving from merely developing larger AI models to effectively deploying AI on a broader scale in a cost-efficient manner.

In this rapidly changing landscape, the race for AI supremacy is not just about technology; it’s also about how effectively nations and organisations can harness their capabilities for real-world applications, particularly in industry and public services. The next few years will be crucial for determining which players will lead in this transformative era.

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Marcus Chen
Written By

At AIPressa, my work focuses on analyzing how artificial intelligence is redefining business strategies and traditional business models. I've covered everything from AI adoption in Fortune 500 companies to disruptive startups that are changing the rules of the game. My approach: understanding the real impact of AI on profitability, operational efficiency, and competitive advantage, beyond corporate hype. When I'm not writing about digital transformation, I'm probably analyzing financial reports or studying AI implementation cases that truly moved the needle in business.

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