According to GlobalData’s “Thematic Intelligence: Tech, Media, & Telecom Themes 2024” report, SKT has the highest ranking among rated telcos (along with a few of its peers) in the AI theme, with the rank of leader.
The company’s activity in this theme will improve its future performance. SKT has some of the most ambitious goals for the use of AI technologies, including generative AI and large language models. Announced in the second half 2023 SKT’s AI pyramid strategy seeks to grow AI revenues to Won25trn ($19bn) by 2028, by pursuing growth across three categories “AI Infrastructure”, “AI Transformation” and “AI Service”, with a focus on both domestic and international growth.
While the use of AI, including generative AI, is a topic of interest for most if not all major telcos around the world, the focus is often on internal adoption to improve efficiencies, reduce costs and improve customer experiences. While these are all key benefits of the technology, one area that sets SKT’s strategy and execution apart is its focus on using AI technologies to drive new revenues across both the B2C and B2B space domestically and globally.
Innovation and partnerships drive new revenue s streams for SKT
Through a combination of internal innovation, ecosystem partnerships and investment in existing solutions, SKT now has numerous AI and LLM based solutions being offered to Korean and global businesses. For example, the company now offers its own “Enterprise Generative AI Service”, based on its own “A.” LLM, Anthropic’ Claude LLM, OpenAI’s ChatGPT and Korean based Konan Technologies LLM.
The service allows companies to embed LLM functionality into business workflows via a SaaS based model, with recommendations on which model to use based on specific use case. Beyond its domestic generative AI service, SKT has partnered with Deutsche Telekom (DT), Anthropic and Meta to develop a telco-specific LLM to help automate and support telco customer support.
The pair plan to monetize this LLM through white-labelling the product to other telcos, with a launch expected in the first half of 2024. Further generative AI and LLMs is just one area of AI SKT is monetizing for increased revenues. For example, the company offers a veterinary imaging diagnostic service called “X Caliber”, that provides AI based diagnostics through a SaaS based application.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataWhile the service launched initially only in South Korea, as of October 2023 it now has distribution deals with medical companies across Australia, Japan and Singapore.
Telecoms need growth mindset
SKT does have some advantages over other telcos as it pursues its AI ambitions. The company owns AI-chip manufacturing business, which its leaning on to support its own AI data center operations. Further within the Korean market, it has advantages in developing Korean-language based models and services over some international competitors. However, other telcos do not necessarily need to invest in developing their own semi-conductor businesses to begin growing AI revenues. Telcos should look towards leveraging their own assets, like customer data and enterprise relationships to start pursuing revenue generating opportunities. Other telcos could also consider partnering with players like Antrhopic and OpenAI to co-develop LLM capabilities and use cases tailored to their markets.
Further, the enterprise AI space is still immature and investment into potential high reward partners can be cheap, for example SKT’s purchased 20% of Konan Technologies for Won22.4bn, immediately gaining a stake in a company with 2,500 clients and 3,000 on going projects. SKT is among the leaders in telco AI because it is taking an aggressive approach. Rather than focus on cost-out from existing businesses, the company is combining its own internal strengths with a growth mindset as it seeks partnerships and acquisitions to grow new business streams, at home and globally.
Related Company Profiles
Deutsche Telekom AG
Meta Platforms Inc