KT and Microsoft partner to launch AI and cloud services for Korea

KT and Microsoft have announced a significant collaboration to develop AI and cloud computing solutions tailored specifically for Korea, in response to the rapid global growth of these technologies. The multi-billion-dollar partnership, which will last for five years, is expected to enhance Korea’s position in the global tech arena, particularly in AI and cloud services optimized for the nation’s industries and culture.

KT CEO Kim Young-shub emphasized that the partnership offers a key opportunity to advance Korea’s AI infrastructure and promote innovation across various sectors. “This collaboration will help KT evolve into a leading AICT company with strong domestic and global market competitiveness,” Kim said, referring to AICT as the integration of AI and information and communications technology (ICT).

Microsoft CEO Satya Nadella also expressed enthusiasm for the partnership, noting that it combines KT’s industry expertise with Microsoft’s full tech suite, including Azure AI and Microsoft 365 Copilot. The goal is to accelerate AI adoption across Korean organizations in both public and private sectors, creating new AI-driven experiences for consumers.

One of the initial focuses of the partnership will be the development of a Korean version of AI models, using OpenAI’s GPT-4 and Microsoft’s Phi language model. These models will be implemented in KT’s internal systems, customer service chatbots, and industry-specific AI solutions for various business sectors.

KT plans to expand its AI capabilities for use in education, healthcare, and in-car entertainment, as well as in B2B solutions. In addition, the partnership will prioritize launching Secure Public Cloud services designed for industries regulated by Korean law. This will help public sector organizations and industries meet local data security and privacy requirements.

Drawing on Microsoft’s experience with European nations like Switzerland and Italy, the two companies will work together to build more secure, cutting-edge cloud services. To facilitate this, KT will launch a new service company specializing in AI transformation (AX), which will offer Microsoft Cloud and AI solutions tailored to the Korean market, with plans to expand into broader regions such as ASEAN.

Both companies also plan to establish an innovation center in Seoul, with Microsoft providing personnel support over the next three years. This center will serve as the hub for joint projects, AI research, and the development of a partner ecosystem to drive AI adoption in Korea. KT and Microsoft will also focus on fostering new AI startups, attracting talent from universities and tech organizations, and exploring advancements in sectors like network modernization and AI healthcare.