Both NAVER and Kakao, two of South Korea’s tech giants, have announced a major reshuffle of their organizational structures to prioritize artificial intelligence (AI) technology. This strategic move aims to shed any redundancy within their systems and accelerate the recruitment of AI talent to bolster their respective tech capabilities.
NAVER Reinforces AI Expertise Across Businesses
NAVER has decided to dissolve its previously established Company in Company (CIC) system in favor of creating twelve specialized divisions, signaling a move towards a more cohesive approach to integrating AI across its various business sectors. This will include focusing on core business areas such as advertising, shopping, and local services – enhancing their professional capacity to tackle market trends head-on and preemptively explore new business opportunities. They also plan to deliver distinctive user experiences by leveraging their own AI, data, and search technologies.
As part of the new structure, NAVER has organized its operations into key divisions, including product and platform development focusing on innovation, business and service domains aimed at exploiting new business models, and content areas tailored to user needs. Certain services such as Chiji, Band, and Music are to operate as nimble “Cell” organizations promoting independent growth.
AI Becomes the Heartbeat of Kakao’s Growth Strategy
Meanwhile, Kakao has taken a different route by centralizing AI competencies under a new, dedicated AI organization. This follows the appointment of a new Chief AI Officer (CAIO), tasked with driving AI technology and service development. Additional research and development efforts are set to be amplified through an organization dedicated to experimenting with generative AI-based services. Part of this strategic shift includes the contemplation of integrating AI development subsidiary ‘KakaoBrain’, indicative of a determined effort to mitigate delays and establish command over the challenging AI market.
Kakao has also applied changes to the CIC structure, disbanding the commerce CIC to focus on strengthening content fields and employing fresh service business models that capitalize on Kakao’s distinct advantages. Repositioning of the tech leadership under the Chief Technology Officer (CTO) further aims at consolidating disparate technological capabilities for driven growth and innovation.
These changes direct NAVER and Kakao through diverging approaches in their AI ambitions, and industry observers are closely monitoring which strategy might lead to greater success in the evolving landscape.
Key Questions and Answers:
– Why are NAVER and Kakao focusing their organizational structures around AI?
NAVER and Kakao are restructuring to embrace the AI revolution because AI technology is seen as a critical driver of future growth, efficiency, and innovation. By centralizing their AI efforts, they can more efficiently pursue advanced technological solutions and maintain competitive advantages.
– What challenges could NAVER and Kakao face with this shift to AI?
One of the biggest challenges is the recruitment and retention of AI talent in a highly competitive market. Both companies will also need to ensure that their AI technologies align with ethical standards and privacy concerns, which are topics of global debate. Additionally, integrating AI into existing services could be technically complex and might require a significant overhaul of legacy systems.
– What controversies are associated with AI development in the industry?
The rapid development of AI has raised concerns about job displacement, biases in AI algorithms, and the potential misuse of AI technologies. There is also worry about the concentration of power among a few large tech firms that control advanced AI systems.
Advantages and Disadvantages:
Advantages of the organizational focus on AI include the potential for:
– Enhanced product development and customer experiences through personalized and intelligent services.
– Improved efficiency and cost reduction by automating routine tasks and processes.
– Creation of new business opportunities and revenue streams that were previously unattainable without AI technology.
Disadvantages might involve:
– High costs associated with R&D, acquiring talent, and restructuring organizations to suit the AI-centric approach.
– Ethical issues and public backlash if AI is not implemented with careful consideration of its societal impact.
– Dependence on technology that might not fully understand or control, which could lead to unintended consequences.
Suggested Related Links:
For further information on NAVER, visit NAVER.
For more details on Kakao’s recent activities, go to Kakao.
While the article focuses on organisational restructuring to prioritize AI, it’s essential to realize this is part of a broader trend in the industry. Many tech companies worldwide are similarly reorienting their businesses to capitalize on the transformative potential of AI. As this technology continues to evolve, it’s likely that we’ll see continued substantial investment and innovation, as well as ongoing debate about the societal implications of AI.
The source of the article is from the blog lisboatv.pt