[Consumerwide - Jinil Kang Reporter / Yohan Bok Reporter] SK Telecom announced their plan to stand as a global AI company, instead of simply taking a role as a telecommunication company.

SKT facilitated a press meeting at the T-tower Supex hall on the 26th, and declared their plan to enhance as a genuine global AI company by strengthening competitiveness and cooperation in various areas focusing on AI. During the press meeting, Youngsang Yu, the SKT CEO announced AI pyramid strategy, which is an innovation that covers overall industry and life based on three area including AI infrastructure, AIX, and AI service. "AI pyramid strategy" of SKT is a strategy that forms each stage in pyramid shape based on self-determination, which makes them to walk closely by customers by offering AI service grounded on cutting edge AI technology, and AI alliance based cooperation model aiming to perform the role of "global AI company". In relation to this, Mr. Yu, the CEO, said that they plan to record over 25 trillion won of sales in 2028 by expending AI related investment from 12% (2019 to 2023) to 33% for the coming 5 years between 2024 and 2028. 

■ SKT is pushing forward on AI technology innovation through their "AI Infra", including AI data centre, AI chipset, and Multi-LLM AI.

The [AI infrastructure] sector, which is located in the basement of the AI pyramid, is the area that combines the cutting edge technology of SKT, and it includes AI data centre, AI-semiconductor, and Multi-LLM. Overconsumption of electricity and increasing carbon emission issues are rising while the data centre is not being able to handle demand in full scaled AI market. In respond to the needs of the market, SKT is planning on adopting a distinctive energy solution system which involves a hydrogen-based battery and an immersion cooling system that reduces energy in the data centre. Furthermore, they are stretching their business sector to an AI hosting business, which contributes to maintaining a higher margin rate, by packaging HBM of Hynix and NPU of Sapeon.

Furthermore, SKT sees that based on their data centre operation capacity and technology (SKT and SK Broadband), strong relationship with global CSP, land that is owned by local partners, and synergy through client managing capacity, they can move forward on global expansion of the business. Besides, SKT plan to expand a data centre in the domestic area by 2030 to approx. twofold compared to the current scale. Sapeon, an AI-semiconductor expert business found by SKT, is releasing a next generation AI chip for Training and inference, X330, which has double capacity in calculation and 1.3 times capacity in electricity efficiency compared to the same model of competitive businesses. By cooperating with businesses in different areas, they plan to secure software competitiveness in the market. SKT announced their AI technology brand name, A Dot X, and Large language model, A Dot X LLM, during the press meeting. The core of the Multi-LLM strategy of SKT is on two tracks, which are strengthening their capacity by enhancing LLM technology based on high quality of data over decades, and cooperation amongst strong AI players from overseas and Korea, including Anthropic, Open AI, and Konan Technology.

In order to strengthen self-capacity, SKT is planning on moving towards communication specialised LLM based on rich Telco. Data, including former communication service, customer service, and lifestyle data, reflect the recent LLM technology trend, Vertical AI, which provides functions according to authentic needs of customers by using their own data from decades of experience. Besides, they are continuing to develop distinctive LLM technology by applying and integrating various skills; SKT super computer Titan (world super computer rank 47th, national business rank 2nd), high comprehension of Korean language by Korean data learning, Intelligence Platform which can integrate B2C and B2B based (Telco Use Case optimised) Multi-LLM and AI technology while communicating with various method, including text, voice, video, and code. SKT is investing 130 billion won in the AI innovation business, Entropic Communications, based in the US, and these two businesses are going to develop various services upon communication specialised service through multi-language, including Korean, English, and German LLM development. In cooperation with Open AI, SKT is going to develop services based on cases from the generative AI hackathon, which they host together, for future business. SKT also invested 22.4 billion won in Konan Technology last year, and they are working together targeting the B2B market through developing customised LLM by combining Konan LLM, which contains plenty of Korean data.

■ 'AIX' strategy; adopting Core Biz to AI, expanding to mobility and AI healthcare.

AIX, which is located in the middle of the AI pyramid, is a strategy to add value by expanding the AI capacity of SKT to relevant areas, including mobility, AI healthcare (UAM, Excalibur), media, ad. tech (M&A), while innovating customer experience and productivity by adopting AI in overall core biz including mobile, broadband, enterprise. SKT expects to reduce approx. 20 to 30% of expanses by adopting AI technology to AICC, including the marketing and contact centre, while enhancing facilitation efficiency by changing the basement of network infrastructure to AI. Also, SKT is planning on providing new customer experience by offering AI, which can offer personalised TV services as AI curation (TV recognise viewer) and AI home TV (communication between AI agent and viewer for various media services), instead of BTV.

SKT is expanding a manufacturing centred Data platform while offering AI financial consulting service (AICC) by combining Multi-LLM with former technology, including AI solutions, including Vision AI, Language AI, and Big Data AI. Generative AI business is going to target two types of customers, which are financial and public domain sector businesses that have strong needs for security and specialised services (On-Premise), and ordinary businesses (SaaS based package).

■ Official release of "AI service", "my AI assistant", and "A Dot"… Aiming at the world market by developing a PAA (Personal AI Assistant) service.

SKT officially released "A dot", a Korean LLM service, after their first presentation in 2022.

SKT said that A dot will develop as "My AI assistant" by AI service to ordinary days, which will innovate communication experience of customers. AI call provides various AI service and mobile experiences based on comprehension and inference on call context, which service can be exclusively offered by communication businesses. AI call suggests a list of people to call based on previous calls while providing brief note for calls by reflecting the data recorded on the call. Also, you can share your physical address or register an appointment in your calendar whose contents were mentioned during the call. They are planning on new AI functions one by one, including a real-time translation. Apple device users can use the function.

In particular, "A Dot" presents AI adopted technology in the overall lifetime, including morning alarm, work time, and sleep alarm. They plan to provide additional services, which are AI sleep management and AI music service, by Sept. A. Sleep service manages sleep time without sleep diagnosis devices by providing the best wake-up alarm services based on the analysis of breathing data, including sleep pattern and quality, in cooperation with "A. Sleep", a sleep management solution startup. AI Music is going to provide an editable playlist service based on voice conversation with A. Dot, such as "Add new BTS songs." or "Remove Jazz music."

In particular, AI also recommends automatically personalised music through a generative customer prediction model.

SKT formed a global telco AI alliance with Deitch Telecom, e&, Singapore Telecommunications Limited in July, and is planning to develop a communication specialised LLM and Intelligence Platform in order to develop and expand a globalised PAA service based on AI service technology proved in the domestic market, and hosting experiences. The entire membership of communication businesses in the alliance counts 1.2 billion from 45 nations. Mr. Yu, the CEO, said, "In 2 to 3 years, using a number of AI personal assistants will become common. Thus, it is one of the hottest market. SKT will preoccupy the AI market through A Dot and cooperation with our global alliance."

■ SKT is targeting to move further as a solid global AI company by growing in competitiveness and cooperation.

SKT is targeting to move further as a solid global AI company by growing in competitiveness, focusing on global AI data centre, including "My AI assistant", "A Dot", and "A Dot X LLM", AI-semiconductor Sapeon, and cooperation, which include global telco AI alliance, and connecting with global players such as Open AI, and Entropic Communications, and K-AI alliance.

Yu Youngsang, the CEO of SKT, said, "Innovation which was begun by Generative AI is already making new value in overall sectors in society. SKT is going to move further as a solid AI company by speeding the project along with an AI pyramid strategy based on strengthening ourselves with cooperation while continually expanding AI related resource investment. In the near future, you will get to see SKT as a global AI company, which resolves social issues while enhancing the productivity of the industry and benefiting customers based on technology and service."