The Meeting of AI and Distribution... KT Supports Hyundai Department Store Group's Digital Transformation

Business Agreement Signed on the 26th
Digital Innovation in Distribution and Logistics Systems

[Asia Economy Reporter Minyoung Cha] KT, a digital platform company (Digico), will support the digital transformation (DX) of Hyundai Department Store Group. This is the first time KT has engaged in company-wide collaboration with a large corporation in the distribution and logistics sectors, with artificial intelligence (AI) expected to be the focal point.

On the 26th, KT and Hyundai Department Store Group signed a "Strategic Business Agreement for Digital Innovation" at the Gwanghwamun Building East in Jongno-gu, Seoul. Through this agreement, the two companies will cooperate on ▲ digital innovation of distribution and logistics systems using AI ▲ enhancing service and marketing competitiveness through big data utilization ▲ creating mutual synergies, among other initiatives.

The main focus is company-wide innovation through AI. First, KT will establish an AI Contact Center (AICC) for Hyundai Home Shopping. Due to the prolonged COVID-19 pandemic, the number of home shopping call center counselors working remotely has increased, creating a need to maintain standardized counseling quality and improve work efficiency. The AICC will streamline customer center operations and standardize counseling quality based on technologies such as voice recognition, speech synthesis, text analysis, and dialogue engines.

Efforts will also be made to improve the efficiency of logistics and delivery systems. An AI logistics project will be piloted to design optimal delivery routes based on data from Hyundai Department Store’s food specialty online mall, "Hyundai Food Hall ToHome." In Hyundai Department Store’s food courts, "AI serving robots" will be operated, and an "AI building operator" that optimally and automatically controls energy facilities will also be provided. The companies plan to collaborate in various areas including customized targeted marketing based on customer big data analysis, air quality management, membership partnerships, and innovation of office spaces for employees.

This move is interpreted as Hyundai Department Store Group adopting innovative technologies to keep pace with the rapidly spreading digital transformation trend in the distribution industry. The investment clock for AI and big data technologies has accelerated in various convenience services such as preferred product recommendations, delivery innovation, fulfillment services, live commerce, and simple payment.

KT is applying related technologies across various industries by leveraging its Digico capabilities. In June last year, KT signed a strategic investment cooperation agreement with Hyundai Heavy Industries Group for digital transformation business collaboration and showcased intelligent robots, logistics platforms, and smart solutions. Park Jong-wook, President of KT’s Management Planning Division, said, "Through this cooperation with Hyundai Department Store Group, we will accelerate digital innovation in distribution and logistics and strive to create a collaborative model that serves as a benchmark for other industries."

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