KT Corporation and Microsoft have revealed a five-year strategic alliance centered on artificial intelligence (AI), cloud solutions, and IT growth initiatives. Through this collaboration, which involves KT’s financial backing and Microsoft’s resource contributions, the companies aim to speed up AI-powered innovations and services across a wide range of industries in South Korea.
As part of the agreement, the two companies plan to develop Korean-specific AI models jointly and offer customized IT services to expand into international markets. The partnership will also support KT’s plans to enhance its AI and ICT space.
As part of the five-year collaboration, KT and Microsoft will focus on five key areas, starting with developing AI models tailored specifically for Korean industries and culture. Using KT’s vast data resources, the two companies will work on customizing Microsoft’s GPT-4o and Phi small language models to create AI solutions for various applications. These include customer service chatbots and specialized AI tools for industries such as education, healthcare, and financial services.
The partnership also aims to enhance cloud services in South Korea by developing a Secure Public Cloud solution. Built on Microsoft’s Cloud for Sovereignty, this cloud service will cater to the public sector and regulated industries, providing secure data management and AI capabilities while ensuring compliance with local privacy and regulatory standards. KT’s Secure Public Cloud will be instrumental in helping businesses across the country integrate advanced AI technology
Additionally, KT plans to establish a company specializing in AI transformation (AX) services designed to assist businesses in adopting the latest AI innovations. This new entity will leverage Microsoft’s cloud and AI expertise and offer comprehensive solutions for Korean companies looking to enhance their digital capabilities. Plans are also in place to expand these services beyond South Korea, targeting broader markets in Asia, including ASEAN nations.
Both companies will collaborate closely on research and development, focusing on advancing AI technology in South Korea. They will also work together to support AI talent by creating training programs to develop tens of thousands of AI professionals.
The partnership also includes developing sovereign cloud solutions tailored for Korea’s public sector and regulated industries, leveraging Microsoft Cloud for Sovereignty. These cloud services are designed to meet local privacy and regulatory requirements, ensuring secure and compliant operations. Additionally, KT will establish a specialized AI transformation (AX) company to help Korean businesses integrate AI technologies, with plans to expand this initiative to ASEAN markets.
To support AI development and adoption, KT and Microsoft will jointly run training programs to cultivate global AI talent. This initiative will include joint projects and workshops with Microsoft engineers to develop over 19,000 employees and 5,800 AX specialists. The partnership underscores a broader goal of driving AI transformation across Korea, as highlighted by KT CEO Young-Shub Kim and Microsoft CEO Satya Nadella, who emphasized the potential for innovation and AI-driven progress in both private and public sectors.
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