Competition Rate Hits 14 to 1... On-Site Demand for AI Adoption Confirmed in Small and Medium Manufacturing

by Kim Chulhyun

Published 28 Apr.2026 09:32(KST)

Accelerating the AI Transformation of Small and Medium Manufacturers

The Sejong City Small and Medium Business Technology Information Promotion Agency announced on April 28 that a total of 172 projects were submitted for its “Multi AI Agent Development (R&D) Specialized for Small and Medium Manufacturers - Proof of Concept (PoC)” public competition, resulting in a competition rate of 14.3 to 1 for the 12 selected projects. This initiative was designed to solve a wide range of unpredictable process issues occurring at small and medium manufacturing sites by utilizing artificial intelligence, with the goal of improving productivity and quality.

Sejong City Small and Medium Business Technology Information Promotion Agency

The outcome of this competition demonstrates that the adoption of artificial intelligence in small and medium manufacturing sites is moving beyond mere interest and is entering the stage of solving real-world problems. Demand for artificial intelligence applications is increasing, particularly for issues that are difficult to address with conventional methods-such as stagnant productivity, quality deviations, and increased process complexity. As a result, participation in proof-of-concept studies to verify these solutions is on the rise. In addition, a significant number of the submitted projects are directly linked to improving manufacturing processes and enhancing quality.

By industry, projects were mainly submitted from sectors with high process complexity, including automobile parts (26.7%), metal processing (19.2%), food (17.4%), and machinery and equipment (16.9%). Going forward, the project evaluations will comprehensively consider technological merit, business potential, PoC suitability, and ripple effects. The submitted projects will undergo eligibility screening in April, followed by both document and in-person evaluations in May. Agreement signings are scheduled for June.

Kwanghyeon Ahn, Head of the AI Innovation Promotion Division at the agency, stated, “Through this competition, we have confirmed that interest in adopting artificial intelligence at small and medium manufacturing sites is translating into actual demand for implementation,” adding, “It is especially meaningful that companies proposed projects on the premise of addressing on-site challenges. Going forward, the development of AI technology will increasingly focus on real-world applications, and we will continue to promote policies to support these efforts.”