South Korean Companies Leading The Charge With AI-Powered Business Solutions
Innovation and consumer engagement shape the future of AI integration.
South Korean companies are increasingly investing in artificial intelligence (AI) technologies, particularly generative AI, to reshape their business models and respond to changing consumer behaviors. A recent analysis by KB Kookmin Card highlights the rapid growth of subscription services, showcasing how AI is becoming integral in various sectors.
According to KB Kookmin Card, customers used subscription services 12.9% more and spent 17.1% more on them from 2023 to 2024. Notably, the use of generative AI subscription services surged by 299% during the same period. This exponential growth signifies the rising importance of AI technologies within everyday consumption. The analysis, which included 10 types of subscription services, also revealed how various services such as shopping memberships, video streaming, and online learning are becoming standard channels for consumers.
Age demographics also play a significant role in shaping these trends. The survey indicated the highest engagement with subscription services among consumers aged 30, who represented 24% of users. Customers aged 25 to 29 averaged about 7.3 subscription services each, with 43% using seven or more services—illustrative of the increasing adoption of multiple subscriptions.
KB Kookmin Card’s spokesperson noted, “Through consumer data analysis, we can see the rapid growth of subscription services across various sectors, especially with the introduction of generative AI.” Such insights are not only beneficial for businesses but also help comprehend the shifts occurring within consumer markets.
Further tapping the power of AI, the company announced plans to launch its generative AI-driven financial advisory service, ‘Everyone’s Card Life Mate,’ which aims to provide personalized assistance and product comparisons based on customer profiles later this year.
Simultaneously, Lotte Members has made headlines with its AI initiative, ‘Segment Lab,’ which combines extensive customer data with external news data to provide businesses with advanced consumer insights. Lotte’s new AI service, which received recognition as an innovative financial service, promises to automate trend analysis and provide customized reports based on customer behavior and market trends.
The Segment Lab is set to debut for Lotte Group affiliates this second quarter. It is built with AI functionalities to help identify customer segments more efficiently, adapting quickly to the dynamic marketplace. Kim Hye-joo, CEO of Lotte Members, emphasized the significance of this innovation, stating, “Segment Lab is specialized AI service for trend forecasting, and we will work on building unique AI agents capable of adapting to the rapidly changing IT environment.”
At the forefront of the dialogue on market trends, the 1st Subway Leadership Forum, hosted by Seoul Metro on October 13, emphasized the need for leaders who can deftly respond to the transformative pressures affecting the transportation sector. Amidst challenges like demographic shifts and digital transformation, the forum underscored the emergence of new transport systems as pivotal to adapting business strategies.
Jeon Mi-young, the representative from Trend Korea Company, shared ten key consumer trends relevant to the year, including ‘Climate sensitivity’ and ‘Gradient-K,’ which mirror current consumer sentiments and preferences. These insights are not only applicable to public transportation but are also relevant to broader market strategies across various sectors.
Such consciousness of customer needs becomes invaluable as Seoul Metro and other companies aim to align their offerings with consumer expectations driven by AI and tech advancements.
Enhancing customer interaction is fast becoming necessary for all businesses as they see the changing dynamics influenced heavily by AI technology and consumer trends. The integration of AI helps companies like KB Kookmin and Lotte advance their service delivery models dramatically.
The wave of AI-powered solutions does not merely signify the adaptation of business practices but also expands the framework through which companies will engage with their customers. Innovation is not just the goal but now the method through which businesses will thrive amid growing competition and shifting consumer preferences.
Looking to the future, continued investment and focus on AI integration are expected. Companies will need to recognize and respond to the changing consumer behaviors shaped by technology and societal conditions. Industry experts believe this strategic focus will sustain new business models, ensuring competitiveness and relevance.
The AI transition has showcased how deeply integrated technology can shape services, offering personalized experiences and unlocking market potential. Major players like KB Kookmin Card and Lotte Members are leading by example, demonstrating how the convergence of consumer engagement with AI can redefine sectors, fostering growth and pushing boundaries.
With South Korean companies establishing themselves as innovators, the focus now turns to how effectively they can evolve these technologies to cater to consumer needs, ensuring the longevity and success of these AI-powered business solutions.