The Mega AI Battle in the Second Half of the Year... Weapons to Surpass Big Tech

Nakao, NC, and Others Finalize Ultra-Large AI
Will It Be the IT Industry's Breakthrough? Killing Service Is Key

This fall, a super-large artificial intelligence (AI) battle will take place in South Korea. In response to the global big tech companies that launched generative AI services in the first half of the year, portal companies and game developers have announced a counterattack. Attention is focused on whether they can offer 'killing services' that provide differentiated value beyond the foundational technology of their own super-large AI models.

Nakao Defends Its Home Turf with Native AI Strong in Korean Language

Naver is currently conducting tests of its super-large AI 'HyperCLOVA X' with internal employees. Final preparations are underway ahead of its external release scheduled for the 24th of next month. This is the first time in two years that Naver is unveiling its next-generation super-large AI. In May 2021, it introduced 'HyperCLOVA,' the first super-large AI in South Korea. Compared to HyperCLOVA, which was trained on 50 years of news and 9 years of blog data, HyperCLOVA X has significantly increased the amount of Korean and English language training. It focuses not only on being the best at Korean worldwide but also on understanding the social and cultural contexts of Korea.

HyperCLOVA X will be launched as a conversational agent service and a search service. The conversational agent is an AI chatbot service similar to OpenAI's ChatGPT. It will interact through question-and-answer conversations and will be integrated with other Naver services. For example, if you ask, "Please recommend an outdoor restaurant suitable for going with my child on the weekend," it will book the recommended restaurant through 'Naver Place' or provide directions via 'Naver Map.'

They will also unveil the AI search service 'Q:'. HyperCLOVA X is specialized for search, with a focus on understanding users' search intent well. Given that ChatGPT and Google Bard have exhibited hallucination phenomena?providing incorrect answers as if they were facts?and bias issues, efforts are concentrated on increasing the reliability of responses. While previously emphasizing the overwhelming amount of Korean language training as a differentiator, the launch of Bard's Korean language support necessitates another weapon.

Kakao will unveil its super-large AI 'KoGPT 2.0' in the second half of the year. This is an advanced model of KoGPT, which was introduced in November 2021. Specific release dates and service names are undecided. However, like Naver's HyperCLOVA, it will specialize in Korean but emphasize efficiency with a smaller-scale model. The strategy is to deploy specialized AI services across various fields rather than merely advancing the super-large AI itself.

First, they will launch the AI chatbot KoChatGPT based on KoGPT 2.0. It is expected to serve as a conversational assistant on KakaoTalk, such as notifying schedules or recommending meeting places. Services combined with the image generation AI Karo 2.0, unveiled last week, will also be possible. For example, creating images to include in presentation materials or producing product advertisement banners, as if instructing a company intern.

An AI-based healthcare service is scheduled to launch in the fourth quarter. They plan to release a research solution this year that drafts interpretations by analyzing chest X-ray medical images. They will also launch a blood sugar management service where AI analyzes diabetic patients' blood sugar and lifestyle data.

First Super-Large AI from Game Company Also Launching... Will It Be an Industry Turning Point?

Among domestic game companies, NCSoft will introduce 'Barco' within the year. NCSoft established an AI center in 2011, the first among game companies, focusing on research and development. Recently, they filed a trademark application, signaling the launch of the first super-large AI from a game company.

Barco will serve as the brain of the digital human that the company is developing. In March, NCSoft unveiled a digital human replicating CEO Kim Taek-jin at the world's largest game developer conference, 'GDC 2023.' To implement a digital human capable of real-time communication like a person, not just replicating appearance, AI technology is essential. AI converts spoken text into voice and applies natural facial expressions. AI is also used to create game stories and character behaviors. The goal is to enhance game immersion by providing a digital human that can interact with users.

The super-large AIs from each company are expected to be turning points to overcome the current crisis. Portal companies face the risk of losing their home market to foreign platform offensives. Especially as their core service, search market share, declines, they need to counterattack with AI. The same applies to NCSoft, which urgently needs a turnaround card amid declining existing game sales and concerns over new game success. However, the key is not the super-large AI technology itself but the services or business models that incorporate it. As services based on super-large AI flood the market, expectations have risen. Kwon Oh-hyung, CEO of FuturePlay, a venture capital firm investing in future technology startups such as AI and big data, emphasized, "What matters to users is not which AI model the service is based on, but the new value the service provides," adding, "The key is to deliver what customers want most efficiently."