Cho Joo Wan CEO: "AX Speed Will Decide Business Success... I Will Act as Chief Diffusion Officer"

"AI Brings Fundamental Changes to the Nature of Work"
AX Vision for a 'Fully Digitalized LG Electronics'
Data Exploration Time Reduced with 'CHATDA'

Cho Joo Wan, CEO of LG Electronics, emphasized, "Now, the speed of AX (AI transformation) will determine the success or failure of a business," and stated that he will personally take on the role of promoting AX to drive structural innovation within the company.

According to LG Electronics on July 28, CEO Cho recently attended an internal communication event called the 'AX Talk Concert,' which focused on AX. At the event, he said, "To rapidly spread AI, I intend to take on the role of Chief Diffusion Officer," and made these remarks.

He highlighted the importance of AX by stating, "As AI is rapidly spreading as a universal core technology leading the Fourth Industrial Revolution, it is not only changing the way companies work but also fundamentally transforming the 'nature of work' itself. We must work in better ways alongside AI, and the entire organization must continuously drive change and evolution in line with this trend."

In the past, DX (digital transformation) enabled optimization, visualization, and anomaly detection at the level of individual tasks. In contrast, AX is expected to apply to the entire business process by integrating these optimized tasks, making breakthrough innovations such as autonomous processes possible. Previously, LG Electronics presented the vision of becoming a 'fully digitalized LG Electronics' through AX and set a goal to increase current work productivity by 30% within two to three years. The plan is to allow employees to focus more on high-value tasks and dedicate more time to developing professional skills and capabilities.

Jo Joo Wan, CEO of LG Electronics, emphasized the importance of AI (Artificial Intelligence) technology at the 'AX (Artificial Intelligence Transformation) Talk Concert,' a communication event with all employees, and pledged to take the lead in spreading AX. LG Electronics.

During the event, major AX initiatives being promoted in key areas were also introduced. A representative example is the in-house generative AI data system 'CHATDA (CHAT based Data Analytics),' which has dramatically shortened R&D (research and development) timelines using AI. According to LG Electronics, the AI-based data analysis capabilities of CHATDA have reduced the time required for data exploration from the previous three to five days to about 30 minutes.

LG Electronics employees use CHATDA to establish product strategies optimized for specific regions or cultures. For example, before conducting customer visits to develop products tailored to the lifestyles of each country, they use CHATDA's data analysis to formulate and refine hypotheses, enabling faster product development.

Earlier this year in India, a 'hygiene and freshness function' was added to some refrigerators. Analysis of Indian customers' refrigerator usage patterns revealed that they frequently open the doors, which, combined with the hot weather, can reduce food freshness. Therefore, a function was added to help maintain a consistent internal temperature. In Brazil, a washing machine product was launched with the 'small load quick cycle' UX (user experience) sequence placed at the forefront. This was based on findings from CHATDA that Brazilian customers do laundry frequently but in small loads, and the product was developed accordingly.

LG Electronics' strategy is to make AI the core engine that connects knowledge and manufacturing in product development. To this end, the scope of CHATDA's data analysis is being expanded from structured data to include unstructured data such as complex development and patent documents, as well as technical reports. Additionally, AI agents will be integrated into the R&D process to help developers solve problems more efficiently.

Examples of AI application in sales were also shared. As customer demand for customized products increases, LG Electronics is developing technology to provide services such as guiding customers to the desired product category using AI. In particular, the company plans to enhance consulting capabilities with AI technology, enabling sales managers who interact directly with customers to offer personalized services tailored to customer needs.

The event also introduced how 'LGenie AI,' which is expanding from a simple internal chatbot to a business AI agent platform, is being utilized and its future development direction. First introduced in 2018, LGenie initially supported simple tasks such as welfare guidance, policy inquiries, and voucher processing. With the integration of AI technology, it is now evolving further.

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