Three Major Obstacles Hindering AI Transformation in Manufacturing: Financial Burden, Talent Shortage, and Uncertainty of Results

82% of Manufacturing Companies Say "AI Not Yet Adopted"
Financial and Workforce Burden Concentrated on SMEs
Expansion of Practical Case Studies and a Mega Sandbox Strategy Needed

As the competitiveness of the manufacturing sector continues to weaken, transitioning to artificial intelligence (AI) has emerged as an essential task. However, companies are facing compounded difficulties, including financial burdens, a shortage of skilled personnel, and uncertainty about actual results.

According to the report "K-Growth Series ⑺: Current Status and Improvement Plans for Corporate AI Transformation," released on November 18 by the Korea Chamber of Commerce and Industry, 82.3% of the 504 domestic manufacturing companies surveyed responded that they "do not utilize AI in management."

The adoption rate among small and medium-sized enterprises was only 4.2%, significantly lower than the 49.2% reported by large corporations. Regarding the cost of AI investment, 73.6% of respondents said it was "burdensome," with the proportion reaching 79.7% among small and medium-sized enterprises and 57.1% among large corporations.

When asked about the presence of AI specialists, 80.7% said they had "none." Only 14.5% cited "internal retraining," and just 3.4% reported "new hires."

The report explained that Korea has about 21,000 AI professionals, which is significantly fewer than China’s 411,000, India’s 195,000, and the United States’ 120,000.

According to the Human-Centered AI Institute (HAI) at Stanford University, Korea’s net flow of AI talent stands at -0.36, indicating a net outflow.

Confidence in the tangible outcomes of AI transformation was also low. Some 60.6% of companies responded that "the effect will be minimal," outnumbering those who believed "the effect will be significant" (39.4%). The report analyzed that, in the case of manufacturing, the large scale of costs and manpower required may heighten skepticism about the return on investment.

The Korea Chamber of Commerce and Industry suggested that customized support is needed according to each company’s competency level. For companies with high AI utilization, an approach without restrictions on usage is suitable, while for those with low adoption rates, a combination of phased consulting, technical support, and on-site training is necessary.

The report also emphasized that the government should expand ongoing projects such as the AI Factory and Manufacturing AI Center, so that companies can quickly accumulate practical case studies and experience real-world effects.

Lee Jongmyung, Head of the Industrial Innovation Division at the Korea Chamber of Commerce and Industry, stated, "Now is not the time to focus on drawing up future blueprints. We must accumulate and utilize real data and secure talent," adding, "A mega sandbox strategy that includes ideas that can be immediately spread in the field, strong support, and bold regulatory innovation must move forward together."