Three mobile carriers transform into AI companies… Launch of global collaboration strategy
Published date: 2024-10-23 14:27 Updated: 2024-10-23 17:39
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SK Telecom, KT, and LG U+ declared their transformation into AI companies. The three companies have established a corporate structure optimized for the AI business combined with telecommunications, and have begun to implement a global collaboration strategy optimized for each company’s situation. Domestic mobile carriers have begun fierce competition by introducing advanced strategies for the communications-based AI market, which is expected to reach approximately 81 trillion won in 2032.
According to market research firm Fortune Business Insight on the 23rd, the size of the AI market combined with the telecommunications business will form $58.74 billion (approximately KRW 81.17 trillion) in 2032 from $3.34 billion (approximately KRW 4.6 trillion) in 2024. It was expected that it would.
The average annual growth rate from 2024 to 2032 is 43.1%. Telecommunications-based AI encompasses not only the efficiency of the telecommunications company’s own network, but also the combination of consumer (B2C) and business (B2B) applications and AI. Fortune Business Insight also presented SK Telecom Adot as an example of a super app that combines AI.
As attempts to create new value by converging telecommunications and AI continue in the global market, Korean telecommunications companies are leading global trends with preemptive AI company transformation strategies.
SK Telecom aims to become an ‘AI Company’ and operates an AI pyramid strategy. We focus on strengthening service and infrastructure capabilities by dividing the layers into three stages: AI infrastructure, AI conversion, and AI service. It is taking a strategy of continuing to invest in its own Large Language Model (LLM) A.X while at the same time signing a wide range of alliances with global AI companies such as Antropic, Perplexity, and OpenAI.
KT declared its conversion to an ‘AICT Company’. Based on cooperation with Microsoft (MS), a key ally, the goal is to dominate the market by developing customized AI and cloud services for Korea by utilizing MS’s world-class GPU farm and software (SW) capabilities. If domestic success becomes visible, we will explore overseas expansion based on our service model.
Under the banner of ‘Growth Leading AX Company,’ LG U+ is setting the goal of innovating customer experience (CX) centered on AX. Based on the ExiGen LLM, which combines LG AI Research’s ‘ExaOne’ with the telecommunication industry, the company will implement a strategy to dominate the market by increasing competitiveness by applying it to specific fields such as telecommunications, education, sports, media, and contact centers.
An official from a telecommunications company predicted, “As telecommunications companies prepare for 2025, they will have an organizational structure optimized for AI and will invest their core business capabilities in executing strategies.”
Reporter Park Ji-seong [email protected]
