Despite Growing Recognition, AI Adoption in South Korean Businesses Remains Limited | Be Korea-savvy

Despite Growing Recognition, AI Adoption in South Korean Businesses Remains Limited


In the corporate world, the actual adoption of AI technology remains surprisingly modest.

In the corporate world, the actual adoption of AI technology remains surprisingly modest.

SEOUL, Aug. 28 (Korea Bizwire) – As deepfake-related crimes capture headlines and artificial intelligence continues its rapid incursion into daily life, the call for robust AI ethics education is growing louder. Yet, in the corporate world, the actual adoption of AI technology remains surprisingly modest.

A recent survey by the Korea Chamber of Commerce and Industry, alongside the Korea Institute of Industrial Economics and Trade, reveals a striking dichotomy: while a vast majority—78.4 percent—of companies acknowledge the necessity of AI to boost productivity and cut costs, only a fraction are putting this recognition into practice.

Despite 8 out of 10 Korean businesses expressing the need for AI in their operations, a mere 30.6 percent are currently leveraging the technology.

The disparity is evident across industries and company sizes. In manufacturing, for instance, AI adoption stands at just 23.8 percent. The services sector shows a more promising uptake, particularly in financial services (57.1 percent) and information technology (55.1 percent).

Larger enterprises are leading the charge, with 48.8 percent integrating AI, compared to 30.1 percent of midsize companies and only 28.7 percent of small and medium-sized enterprises. Regionally, the gap widens further, with 40.4 percent of metropolitan businesses using AI, versus a scant 17.9 percent in non-metropolitan areas.

For those 153 companies already employing AI, the primary application is product development and R&D, cited by 66.7 percent. Time savings emerge as the top benefit, highlighted by 45.8 percent of respondents. Notably, 86.3 percent of these companies plan to expand their AI capabilities, with 69.0 percent indicating increased investment in the technology.

However, challenges persist. Among the 347 companies not yet using AI, nearly half have no plans to do so in the future. The hurdles are significant: 34.6 percent point to a lack of skills and IT infrastructure, 23.1 percent find the costs prohibitive, and 21.9 percent simply don’t see the need.

To close this gap, companies underscore the need for substantial investment in AI and R&D (51.4 percent) and a stronger AI infrastructure (25.0 percent).

“The use of AI in businesses is growing, from streamlining simple tasks to enhancing manufacturing processes, but it remains in its infancy,” remarked Kang Seok-gu, head of the Korea Chamber of Commerce’s research division.

“Comprehensive support from the government is crucial to propel the widespread adoption and effective utilization of AI technology in the corporate sector.”

Ashley Song (ashley@koreabizwire.com)

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