EY Hanyoung "Domestic Companies Focus on Internal Stability through Operational Efficiency... Attention on AI and Data Investment"

Survey of 457 Senior Executives

Amid rising uncertainty, domestic corporate executives plan to focus on strengthening their fundamentals through operational efficiency this year. They are also considering concentrated investments in artificial intelligence (AI) and data for future growth.

Global accounting and consulting firm EY Hanyoung recently conducted a survey on future management strategies and response plans targeting senior executives of domestic companies who participated in the ‘2024 EY Hanyoung New Year Economic Outlook Seminar.’

They identified AI (79%) and data (64%) as the top areas for focused investment in digital transformation over the next two years. According to a survey on the current status of AI adoption in domestic companies, 32% of respondents said they have partially adopted and utilized AI, while only 6% reported company-wide AI adoption and application. Half of the respondents (50%) have not yet adopted AI but plan to do so in the future. Only 12% stated they have no plans to adopt AI.

Larger companies were found to be more actively adopting and utilizing AI. Among respondents working at companies with assets of 2 trillion KRW or more, 54% reported either company-wide or partial AI adoption. In contrast, only 25% of respondents from companies with less than 500 billion KRW in assets reported AI adoption.

Kim Su-yeon, EY Consulting Partner and AI Leader, emphasized, “The survey results confirmed the market perception that high-quality training data leads to advanced AI as AI utilization expands. Even after adoption, it is necessary to continuously monitor and improve quality to advance AI to a level that creates added value for the business.”

When asked about short-term strategies, respondents working at companies with assets of 2 trillion KRW or more said they would focus on operational efficiency and automation (30%) and strengthening existing businesses and maximizing sales (29%) over the next two years to drive innovation. This reflects a short-term focus on enhancing core business competitiveness amid a highly volatile environment. For long-term competitiveness, they answered that investments should increase in product/service innovation and research and development (R&D) (40%), new business investments and mergers and acquisitions (M&A) (30%), and digital transformation (28%).

Byun Jun-young, Head of EY Hanyoung Industrial Research Institute, stated, “As we enter an era of extreme uncertainty where global business environment predictions are impossible, companies are proactively seeking various measures to respond and secure resilience. To enhance resilience, it is important to focus on proactive portfolio optimization, including securing next-generation growth engines, and improving overall operational efficiency in finance, accounting, supply chain, and logistics.”

The survey included 457 respondents from 14 industry sectors among seminar attendees. Of the respondents, 39% work at companies with assets of 2 trillion KRW or more, 24% at companies with assets between 500 billion KRW and 2 trillion KRW, and 37% at companies with less than 500 billion KRW in assets.