[Opinion] In the AI Era, There Is a Severe Shortage of Digital Talent

In South Korea, the term artificial intelligence (AI) was first encountered in 2001 through the title of a film by American director Steven Spielberg. However, it remained a specialized term in the realm of science fiction imagining a distant future until March 2016, when the Go match between Lee Sedol and AlphaGo quickly turned it into a common noun. It was the shock of witnessing the supreme human player in the familiar yet complex game of Go being defeated by AI. Since then, within just three years, AI has spread as a service integrated into everyday life. AI technology is now incorporated in platforms for movie recommendations, restaurant searches, travel guides, and even children's educational programs.

Moreover, last year marked a turning point in the transition from the analog old order to the digital new order. The news that Emart, the undisputed number one in the domestic discount store market, recorded its first-ever operating loss in the second quarter symbolized a shift in leadership within the distribution industry. It is well known that Coupang, an online retailer at the center of this change, is also struggling with large-scale losses. However, apart from the future prospects of Coupang as a single company, it is clear that the distribution industry is undergoing fundamental changes starting with Coupang's emergence. In content distribution, the growth of video platforms such as YouTube and Netflix has rapidly weakened the position of analog media. The controversy and conflicts surrounding 'Tada,' which has attracted social attention, also indicate that the traditional analog transportation business is struggling to respond to the potential of digital mobility services applying the platform service concept. These trends are expected to spread comprehensively across industries in the future.

The two phenomena clearly observed last year?the spread of AI technology and the expansion of the digital new order?mean that existing companies have passed the stage of a general understanding of digital upheaval. From this year onward, the establishment and implementation of concrete strategies are necessary, but the reality is challenging. This is because there is a shortage of capable talent within organizations who understand AI technology and can connect it to business model innovation. It is also not easy to recruit externally. There is an absolute shortage of related personnel across the country, causing bubbles in the hiring market, and even among candidates, there is a lack of discernment to select the truly needed talent. This situation is even more difficult for mid-sized and small companies, and it is unlikely to improve significantly in the near future. However, since simply lamenting is not an option, it is necessary to change the approach.

Currently, some universities in South Korea have secured a certain level of digital-related capabilities, including AI. This is the result of increased interest and investment in the digital domain at both the institutional and individual professor levels over the past decade amid the uncertain outlook for traditional analog industries. Many universities also have systems such as industry-academia cooperation programs to support corporate digital innovation. Although there are differences in characteristics and capabilities among universities and professors, if companies accurately define problems and specify areas for collaboration related to digital innovation, they can expect high returns relative to the investment. Some mid-sized companies have already demonstrated actual cases of solving challenges and improving understanding of digital technology through this approach.

The next step is to give opportunities to the younger generation within the organization who are familiar with digital technology. The existing generation has limitations in adapting to the new era. Therefore, the plan is to have them focus on operating existing business models while selecting promising talents among the younger generation to nurture them as a group leading digital innovation. This motivates the newcomers, whose business frameworks are not yet fixed, to pioneer the organization's future.

For existing companies based on analog businesses, the practical starting point for responding to digital upheaval is to expand the capabilities of their members. If it is difficult to quickly recruit experts in the short term, a realistic approach is to collaborate with external universities and nurture internal young talents.

Kim Kyung-jun, Vice Chairman, Deloitte Consulting

This content was produced with the assistance of AI translation services.