[Company Visit] Full-Scale Growth Begins... Ultra-Precision AI Specialist Deepnoid

Visible Sales Growth with Two Wings of Medical and Industrial AI Technology
"Continuous Orders... Expecting Profit Turnaround Next Year"

Patents Acquired by Deepnoid. Photo by Hyunseok Yoo

"The business is progressing faster than expected. As various companies approach us with collaboration proposals, business opportunities are increasing," said Son Dong-guk, Head of the Management Support Division, during a meeting at Deepnoid's headquarters located in Guro-gu, Seoul. He explained that the company's business is rapidly advancing from medical to industrial sectors. Upon entering Deepnoid's headquarters, numerous patents were displayed on the right side. The company holds about 100 artificial intelligence (AI) patents.

Founded in 2008 as a medical AI specialized company, Deepnoid is expanding its business scope beyond the medical field into industrial and security sectors. It entered the KOSDAQ market in 2021. The business areas are broadly divided into medical AI and industrial AI. Among these, the representative products are DEEP:NEURO, an AI imaging diagnostic solution for cerebral aneurysms, and DEEP:FACTORY, a deep learning-based machine vision solution. These are also Deepnoid's core products.

DeepNeuro, a medical AI solution. By using DeepNeuro, suspected areas of cerebral aneurysms can be identified. Photo by Deepnoid

DEEP:NEURO is a diagnostic solution that assists diagnosis by AI reading and analyzing suspected cerebral aneurysm areas in brain vascular MRA (Magnetic Resonance Angiography) images. The number of patients with cerebrovascular diseases in Korea surged from about 920,000 in 2017 to 1.1 million in 2021. Head Son said, "Since people undergo health checkups every year, we expect steady sales. Although 1.1 million people have been diagnosed, including those who undergo examinations, the sales scale could be larger than expected."

Sales from DEEP:NEURO are expected to begin by the end of this year. Recently selected as an innovative medical technology, it can now conduct clinical trials as a temporarily non-reimbursable item. Additionally, the three medical AI imaging diagnostic solutions?DEEP:CHEST, DEEP:LUNG, and DEEP:SPINE?are planned to be supplied mainly to health screening centers.

If medical AI is the food for the future, industrial AI is the current growth business. These include DEEP:SECURITY, DEEP:FACTORY, and DEEP:TAP. Regarding Deepnoid’s shift from medical AI to industrial applications, Head Son explained it as a "business created by customers." It was developed upon customer requests and turned out to be a big hit. The ultra-precise technology Deepnoid possessed in the medical field shone in the industrial sector.

Deepnoid's security AI solution, DeepSecurity. It allows easy identification of prohibited items through X-ray. The detection rate reaches 97%. Photo by Deepnoid

This year, Deepnoid’s business divisions?medical, industrial, education, and platform?have secured a total of 39 projects. Among them, 18 are industrial projects. In particular, the AI X-ray image automatic reading systems for aviation and corporate security, 'SkyMaru DEEP:SECURITY' and 'DEEP:SECURITY,' are currently supplied to major domestic government offices and Gimpo International Airport, and preparations for overseas expansion are underway in collaboration with Korea Airports Corporation. The reading accuracy of these products exceeds 95%. Moreover, since they are updated annually rather than being a one-time installation, steady sales are generated.

Especially, DEEP:FACTORY, used in secondary battery, display, and smartphone manufacturing processes, is expected to generate the largest sales. After its launch, it was supplied to global display and chemical companies. Additional orders are also anticipated. Head Son said, "We applied ultra-precise medical AI technology to the industrial sector. Our experience handling precise medical data was helpful."

Expectations for turning a profit next year are high. Currently, they are securing additional projects related to secondary batteries, and if sales increase substantially next year, they believe they can reach the break-even point (BEP).