Expanding Corporate Use of Artificial Intelligence
|Author||Choi, Mincheol;Song, Danbee;Cho, Jaehan||Date||2021.04.02||Issue No||105|
Despite interest in artificial intelligence (AI) as a transformative driver of economic growth, few Korean
companies use AI.
Companies currently using AI are increasing their AI investments and expenditures. Companies employ AI
in a wide range of functions and fields including automated operations, predictive analytics, product and
service development, and sales and inventory management.
Challenges to the application and use of AI exist in multiple, closely-connected domains. Challenges
include human capital scarcity, inadequate funding, the difficulty of acquiring technology, and both the
internal and external business environments confronting companies.
Major challenges in the technology acquisition and planning stages include: difficulty securing a skilled
workforce, difficulty obtaining funding, and a lack of in-house infrastructure.
Internally, the most serious and frequently-occurring problems are lack of organizational competence and
the high cost of investment in AI compared with a relatively low return on investment (ROI).
Externally, the main problems are market uncertainty and burdensome regulations concerning personal
Comprehensive and effective policy is needed to alleviate the many complicated challenges confronting
corporate uptake and use of AI.
To address the shortage of AI experts, an urgent and concerted effort is needed to cultivate and increase
the number of personnel that hold a Master of Science (MS) degree or higher, particularly in the fields
of software and model development.
Two things must be done to improve the internal corporate environment:
- Simplify and streamline funding procedures for corporate uptake and application of AI
- Increase funding for R&D projects and projects that utilize AI
Externally, broad reform is necessary to improve the operating environment beyond the corporate walls.
Companies must be able to attract more investment for AI and acquire critical technology and
infrastructure. Regulatory reform concerning personal information laws is also necessary.
*Survey by the Korea Institute for Industrial Economics and Trade (KIET).