LG CNS-Agile Soda Sign MOU for Joint Development of AI Reinforcement Learning Optimization Project

LG CNS Vice President Hyun Shin-gyun (right) and Agile Soda CEO Choi Dae-woo (left) pose for a commemorative photo after signing the agreement.

[Asia Economy Reporter Seungjin Lee] LG CNS is partnering with AgileSoda to provide optimization models using reinforcement learning technology targeting business and marketing of clients in the finance and manufacturing sectors.

LG CNS announced on the 10th that it has signed a “Joint Development Agreement for AI Reinforcement Learning Optimization Business” with AgileSoda.

“Reinforcement learning” is a technology that assigns differential rewards to each action chosen by artificial intelligence (AI) during decision-making processes, enabling AI to determine the optimal sequence of actions. It is mainly used as an AI learning method in autonomous vehicles and games, with AlphaGo being a representative case.

The two companies plan to apply optimization models to areas such as stock and cryptocurrency investment portfolios, insurance fraud detection, and credit loan limits for financial sector clients, as well as process scheduling, product design, quality control, inventory management, and equipment control for manufacturing sector clients.

For example, there is a case of an optimization model for a client aiming to reduce fraudulent insurance claims and overpayments. After reinforcement learning on the credit rating, insurance premium payment status, and treatment status of policyholders who filed claims, the AI determines whether the case requires immediate payment or further review and investigation, ultimately calculating the final insurance payout. AgileSoda recently provided this case to an insurance client, automating the insurance claim process and achieving cost savings of approximately 25 billion KRW over five years.

The two companies will also develop data-driven future predictive optimization models applicable to general corporate management areas such as future investment portfolios and workforce/resource allocation. Their reinforcement learning technology can also be applied in marketing fields, including call center script creation to improve customer satisfaction, product pricing, and personalized product recommendation services.

LG CNS will utilize its AI big data platform brand ‘DAP MLDL’ for the reinforcement learning-based optimization business. DAP MLDL is a platform for AI development and data analysis. Last year, DAP MLDL received the highest grade (Grade 1) of the ‘GS Certification’ from the Korea Information and Communication Technology Association (TTA), a government-recognized software quality certification.

AgileSoda is an AI startup that was the first Asian company selected as a “2021 Gartner Cool Vendor in AI Core Technologies.” Gartner, a global IT research firm, annually verifies and selects emerging companies that can lead the future as Cool Vendors. The AI field is divided into four categories: core technologies, machine learning, operations and engineering, and natural language processing, with about 3 to 4 companies selected in each category.

AgileSoda will use its ‘BakingSoda’ platform for this business. BakingSoda is AgileSoda’s AI platform that reinforces and automates business data to support optimal decision-making.

The two companies plan to combine their respective AI platforms to start providing reinforcement learning consulting and optimization services to clients.

Hyun Shinkyun, Vice President and Head of LG CNS D&A Division, stated, “Through open innovation with a startup possessing unique technology in reinforcement learning, we will maximize synergy with LG CNS’s analytics-specialized platform, analyze customer experience and value, and actively support the digital transformation (DX) of customer businesses.”

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