Government and private sector to invest $2.6 billion in artificial intelligence manufacturing

AI Image Rendering (YONHAP)

The government and private sector will invest a total of 3.7 trillion won ($2.6 billion) in 26 manufacturing projects using artificial intelligence technology to improve productivity, the Industry Ministry said on Monday.

According to the Ministry of Trade, Industry and Energy, nine projects will be handed over to conglomerates, while the rest will be taken up by small and medium-sized enterprises.

“We aim to revitalize South Korea’s manufacturing industry by applying automated AI-based solutions across all sectors,” Industry Minister Ahn Duk-geun said in a statement.

Of the total investment, the government will contribute 190 billion won over the next four years.

These projects include leading Korean automaker Hyundai Motor’s plan to create a flexible manufacturing system capable of producing different models on a single line through artificial intelligence-based process optimization.

Posco, a leading steel producer, will also deploy artificial intelligence technologies to automate production processes with high safety risks, improving worker safety.

The ministry said the projects are expected to increase companies’ productivity by 30 percent and reduce production costs by 20 percent.

The initiative will also help them reduce their carbon footprint by reducing energy consumption by 10 percent, the company added.

Yonhap