Samil PwC "In the On-Device AI Era, Key Capability is Extracting Important Data"

Report: The Era of the Third IT Revolution Device is Coming

The market for ‘on-device AI,’ where artificial intelligence (AI) algorithms operate on every individual device, is expected to grow rapidly in the future. Since on-device AI learns and computes based on small-scale data, the ability to extract valuable data is analyzed to be directly linked to business performance.

On the 4th, Samil PwC announced the publication of a report titled ‘The Era of the Third IT Revolution Device is Coming: On-Device AI,’ which contains this information. The report introduces the on-device AI market and provides the current status and outlook of domestic and international companies’ preparations for key related technologies.

On-device AI refers to technology that performs AI functions on devices themselves, such as smartphones, laptops, and automobiles. Its advantages include faster service delivery speed since it does not go through cloud servers, better data security, and significant reductions in data center operation costs and time. According to the global market research firm Global Market Insights (GMI), the global on-device AI market size is expected to grow from $5 billion (approximately 7 trillion KRW) in 2023 to $70 billion (approximately 87 trillion KRW) by 2032, with an average annual growth rate of about 25%.

The Era of the Third IT Revolution Devices [Provided by Samil PwC]

The report focused on AI semiconductors, which are the core brain of AI. AI semiconductors are non-memory semiconductors that execute large-scale computations required for AI implementation at ultra-high speed and low power. Demand for DRAM, a smaller-sized high-performance and low-power memory semiconductor, is also expected to surge. The report stated, “As high value-added DRAM emerges as a key solution for on-device AI, the ‘supplier dominance’ trend is expected to continue for the time being,” and “AI memory semiconductors can be customized for various fields, so future business will also shift to an order-based model.”

As the on-device AI market officially begins this year, the capability to secure meaningful data based on given data is expected to be directly linked to business performance. Along with this, the report advised that companies should develop the ability to identify and prevent potential risks in advance, such as the possibility of malfunctions and the risk of AI technology misuse.

On-Device AI Value Chain and Major Related Companies [Data Provided by Samil PwC]

Jae-guk Jeong, IT (Information Technology) Industry Leader (Partner) at Samil PwC, said, “In addition to smartphones and PCs, on-device AI is expected to be rapidly applied to various hardware devices such as extended reality (XR) headsets, robots, and drones. Competition for developing AI-based high-spec hardware will become more intense,” adding, “Ultimately, companies that build vertically integrated systems covering hardware devices, software, chips, and services will become the true leaders of the on-device AI era.” Detailed information about the report can be found on the Samil PwC website.