KT and Microsoft Accelerate AI Innovation in Korea
Introduction: A Strategic Partnership
On September 28, 2024, KT Corporation and Microsoft announced a groundbreaking five-year, multibillion-dollar partnership aimed at catalyzing AI transformation across South Korea. This strategic collaboration is expected to drive advancements in AI technologies and services for over 650,000 businesses and 17 million consumers in the region.
Key Initiatives of the Partnership
The partnership will focus on pivotal areas including:
- Development of customized AI solutions tailored for the unique needs of the Korean market.
- Creation of Korean sovereign cloud solutions that comply with local regulations.
- Establishment of an AI transformation specialized service company.
- Advancement of AI research and development capabilities within Korea.
- Enhancing KT’s overall AI and ICT transformation strategies.
Collaboration on AI Models
As part of their collaboration, KT and Microsoft will work together to customize OpenAI’s GPT-4o through Azure OpenAI Service. Using KT’s rich dataset reflecting Korean language and culture, the companies aim to develop AI models that serve both internal applications and consumer-facing solutions, such as advanced customer service chatbots and industry-specific applications.
Building a Korean Sovereign Cloud
A critical component of this partnership includes the development of KT’s Secure Public Cloud, built on Microsoft’s Cloud for Sovereignty. This solution will cater to Korean-regulated industries, ensuring compliance with local privacy requirements while providing access to the latest Azure capabilities.
Launching a New Service Company
KT plans to establish an AI transformation-focused service company that will deliver Microsoft Cloud and AI expertise to Korean businesses. This entity aims to support local businesses in embracing cutting-edge AI technologies, with aspirations to expand its services into wider Asian markets.
Co-Innovation Center and Startups Support
Microsoft will aid KT in setting up a co-innovation center dedicated to accelerating AI transformations. This center will facilitate the development and prototyping of AI solutions, equipped with both Microsoft technology and KT’s local expertise. Additionally, KT intends to foster new AI startups in the Korean ecosystem, bolstered by Microsoft’s support through Azure credits and technical guidance.
Migrating to Microsoft Azure
As part of the collaboration, KT will migrate and modernize its existing IT workloads to Microsoft Azure, enhancing its IT infrastructure’s agility, resilience, and security. Plans include developing a new data platform powered by Microsoft Fabric and Azure OpenAI Service, which will further streamline operations.
Commitment to Skill Development
Microsoft will play a vital role in equipping KT’s workforce, with plans to train over 19,000 employees in cloud and AI skills. This initiative aims to prepare more than 5,800 AX specialists to lead technological transformation efforts effectively across the KT organization.
Quotes from Leadership
KT CEO Young-Shub Kim emphasized the strategic nature of the partnership, stating it presents a significant opportunity for both technological collaboration and expanding Korea’s foundation in AI. Satya Nadella, Microsoft’s Chairman and CEO, expressed excitement about combining KT’s expertise with Microsoft’s technology to catalyze AI innovation for various sectors.
The Future of AI in Korea
This landmark partnership reflects a commitment to advancing the capabilities of AI in Korea. By leveraging local expertise, infrastructure, and Microsoft’s technology, KT and Microsoft aim to drive transformative innovation that will impact industries and everyday life for millions of consumers in South Korea.
As they work together, the collaboration sets a precedent for how global tech companies can partner with local leaders to enhance technology adoption while addressing specific regional needs.