KT has announced a strategic collaboration with Microsoft to lead AI Transformation (AX) in various industries, particularly in manufacturing. The partnership aims to provide AI solutions that are not only optimized for Korean language understanding but also affordable and secure.
Key AI Solutions Introduced
AI Assistant for Manufacturing
KT and Microsoft will jointly develop an AI assistant capable of analyzing context and understanding complex Korean, enabling quick responses in manufacturing settings. This AI assistant is designed to overcome compatibility issues between different equipment in manufacturing environments.
Secure Public Cloud (SPC) Service
The companies will also offer a ‘Secure Public Cloud (SPC)’ service, leveraging Microsoft’s advanced security technologies. This includes state-of-the-art data security control, confidential computing technology, and data encryption keys to ensure enhanced security for businesses.
Addressing AX Challenges in Manufacturing
The manufacturing sector has been slow in adopting AX, with only an 8% conversion rate last year, according to a Global Consulting Group report. KT aims to change this by providing tailored AI solutions that address the specific challenges faced by the industry.
Business Growth Projections
The domestic AX market is expected to grow significantly, from 6.3 trillion won this year to 17.2 trillion won by 2029. KT plans to increase its AX business sales by 300% by 2028 compared to 2023, focusing on innovation in the manufacturing sector.
Efforts to Lower AI Solution Costs
To make AI solutions more accessible, KT is working to reduce costs. The company is forming a partnership with U.S.-based information analysis software company Palantir to support domestic businesses. By leveraging Palantir’s high-technology AI solutions and KT’s consulting and service capabilities, the goal is to lower operational costs for Korean services.

Kim Won-tae, head of KT’s strategic customer business division, emphasized the company’s readiness to provide AX solutions that meet customer needs at any time and place, integrating their communication and IT capabilities.
Future Plans
KT has been continuously hosting seminars since February, inviting management from various industries to share AX strategies. The goal is to support companies in accelerating their AX adoption and to foster growth in the AX market.