KT Corporation and Microsoft Forge Strategic Partnership to Propel AI Innovation in Korea
KT Corporation and Microsoft have announced a transformative five-year partnership aimed at accelerating artificial intelligence (AI) innovation and digital transformation across Korea. The multibillion-dollar collaboration, unveiled on September 29, 2024, will focus on AI, cloud technologies, and IT solutions, with KT making significant investments while Microsoft commits resources in infrastructure and expertise.
The strategic partnership, built on the agreement made in June, targets five key areas: the development of customized AI solutions, the launch of Korean sovereign cloud services, the establishment of an AI transformation (AX)-focused service company, enhancing AI R&D capabilities, and driving KT’s AICT transformation. These initiatives are designed to foster the growth of AI-powered services and help Korean businesses and public sectors navigate the increasingly digital landscape.
Customized AI Solutions for Korea
A significant focus of the partnership will be on the development of AI solutions tailored specifically for the Korean market. Leveraging KT’s deep knowledge of Korean industries and culture, the two companies will work on customized versions of GPT-4 and Microsoft’s Phi models to enhance customer service, education, healthcare, and business applications. These solutions will be created using Microsoft Copilot Studio and Azure AI Studio to drive AI-powered customer experiences across various industries.
KT Corporation plans to deploy these AI technologies both internally and externally, developing AI agents that can transform consumer interactions and business processes. The partnership also emphasizes a Responsible AI framework to ensure that AI services are safe and reliable for the Korean market.
Korean Sovereign Cloud Solutions
The partnership also aims to deliver secure public cloud solutions for Korea’s regulated industries through KT’s sovereign cloud platform. This platform, supported by Microsoft’s Cloud for Sovereignty, will provide highly secure cloud services that adhere to local regulations, offering businesses in the public sector and other regulated industries access to advanced cloud and AI technologies while safeguarding their data.
Accelerating AI Transformation with AX-Specialized Service Company
KT will also establish a new AX-specialized service company, designed to assist businesses in Korea with adopting the latest AI innovations. With Microsoft providing consulting and support, this new entity will drive AI transformation in Korea and beyond, extending its reach to broader markets like ASEAN. The company will focus on helping businesses modernize using Microsoft Cloud and AI technologies.
Advancing AI R&D Capabilities Across Korea
To advance AI research and development, KT Corporation and Microsoft will co-create an innovation center that will focus on building, prototyping, and deploying new AI solutions. This facility will support businesses across Korea and help foster AI startups. Additionally, KT will invest in building an AI partner ecosystem, while Microsoft will provide resources like Azure credits and technical expertise to bolster these initiatives.
KT’s AICT Transformation and Upskilling
As part of KT’s organizational transformation, the company will modernize its existing IT infrastructure by migrating workloads to Microsoft Azure and developing new AI services using Microsoft Fabric and Azure OpenAI Service. KT also plans to upskill its workforce, empowering over 19,000 employees with cloud and AI capabilities, and training 5,800 AX specialists to lead the company’s AI transformation.
KT Corporation CEO Young-Shub Kim expressed optimism about the partnership, stating, “Our collaboration with Microsoft marks a pivotal moment for Korea’s AI industry. Together, we aim to elevate Korea’s AI capabilities, driving technological transformation across various sectors.”
Microsoft CEO Satya Nadella added, “This partnership combines KT’s industry knowledge with the full power of our tech stack, from Azure AI to Microsoft 365 Copilot. Together, we will accelerate the AI transformation of Korean organizations and create AI-driven experiences for millions of consumers.”
With this strategic alliance, KT Corporation is poised to lead AI innovation in Korea, setting the stage for a new era of AI-driven services that will shape the future of the Korean economy.