The advancements in digital transformation (DX) and artificial intelligence (AI) are seen as both a crisis and an opportunity for South Korean businesses. (Image courtesy of NordVPN)
SEOUL, Mar. 7 (Korea Bizwire) – A recent analysis conducted using the generative AI ChatGPT on the annual management messages of top companies has revealed that the advancements in digital transformation (DX) and artificial intelligence (AI) are seen as both a crisis and an opportunity for South Korean businesses.
On March 6, the Korea Chamber of Commerce and Industry released findings that focused on 47 of the top 100 publicly traded companies based on market capitalization at the end of last year.
The analysis, facilitated by ChatGPT, delved into sector-specific opportunities and risks, as well as business outlooks for 2024, gathered from press releases and company websites.
According to the results, ChatGPT identified the spread of digital transformation and AI as dual factors that could serve as both opportunities and risks for these companies.
The analysis suggests a double-edged sword; companies that fail to adapt to digital transformation and AI might lose their competitive edge, while those successfully integrating new technologies into their infrastructure and customer services could gain a significant advantage.
ChatGPT also highlighted other factors, including the reinforcement of carbon neutrality and global market expansion as opportunities, while supply chain restructuring, geopolitical risks, and the trio of high inflation, high exchange rates, and high oil prices were flagged as potential risks.
Joo Won, head of the Economic Research Department at the Hyundai Research Institute, commented, “In the rapidly changing global economic and industrial landscape, it’s clear that South Korean businesses need to focus on AI and carbon neutrality in terms of technology, and seek emerging markets beyond China in terms of market expansion. It’s a subtle reminder that the government and businesses should not overlook the risks, such as supply chain restructuring.”
Upon further sector-specific analysis, the semiconductor industry was noted for the opportunity presented by the rising market demand for high-performance semiconductors, driven by the growth of AI necessitating faster processing speeds, like those offered by high bandwidth memory (HBM) chips.
Heightening demands for HBM with the spread of AI (Image courtesy of Yonhap)
For the secondary battery sector, the development and sophistication of new technologies were seen as opportunities. Innovations such as high-nickel batteries, improving performance, and the much-anticipated solid-state batteries were seen as potential market leaders.
Other sectors, like shipbuilding, were identified for the increasing demand for next-generation eco-friendly ships using methanol, ammonia, and hydrogen. In finance, the growth of digital and non-face-to-face channels was recognized as an opportunity.
The risks varied across sectors, with internal and external market changes, global environmental shifts, demographic changes, and regulatory environments all playing a part.
Specifically, the semiconductor industry faces uncertainty in the supply chain post-COVID-19, highlighting the need for strategic management and cost considerations. The secondary battery sector sees the advent of electric vehicles entering the ‘chasm’ phase as a risk.
This survey marks the first instance of the Korea Chamber of Commerce and Industry utilizing ChatGPT for analysis.
The study was conducted in two phases using ChatGPT-4, initially focusing on individual company opportunities, risks, and economic forecasts for 2024, and then compiling these results to draw broader conclusions about the overall business environment and sector-specific issues.
To ensure the accuracy of the analysis, each company was examined ten times.
This approach follows the trend of using AI like GPT for economic analysis and forecasting, as evidenced by a study by the Richmond Federal Reserve, which found that ChatGPT’s assessments of interest rate policies closely matched those of experts.
Hyun-Soo Kim, head of the economic policy team at the Korea Chamber of Commerce and Industry, noted, “There’s ongoing research abroad into applying large language model (LLM) AI in fields like economics and finance.
By processing unstructured data, such as CEO messages, through AI for economic analysis, we can overcome the limitations of traditional number-based statistics, suggesting potential applications across various sectors in the future.”
Kevin Lee (kevinlee@koreabizwire.com)
