Press Conference in Berlin, Germany on the 5th (Local Time)
"Currently, the connection rate with UP home appliances' ThinQ app is about 50-60%, but with 'LG ThinQ ON,' we will make this 100%."
Ryu Jae-cheol, President of LG Electronics H&A Business Division, revealed the goal of 'ThinQ ON,' the core hub of AI Home applying generative artificial intelligence (AI). The strategy is to launch the service within the year to enhance customer convenience for the ultimate goal of the home appliance business: 'improving the value of life through liberation from household chores.'
On the 5th (local time), at a press conference held in Berlin, Germany, where IFA 2024 is taking place, President Ryu said, "Customers only need to communicate with generative AI as if talking to friends or family," adding, "The rest will be handled by AI, which will control home appliances and provide lifestyle services to optimally care for customers, opening the era of AI Home."
Ryu Jae-cheol, President of LG Electronics H&A Business Division, is speaking at a press conference on the 5th (local time) in Berlin, Germany, where IFA 2024 is being held. [Photo by Han Ye-ju]
President Ryu outlined three features of the announced AI Home: ▲ Convenient communication with AI in everyday language ▲ Upgrading existing home appliances to AI appliances ▲ Expanding beyond simple appliance control to various services.
This is made possible based on LG Electronics' AI agent 'FURON' embedded in ThinQ ON. FURON acts as the 'brain' of LG AI Home by combining various large language models (LLMs) with the smart home platform LG ThinQ. ThinQ ON applies OpenAI's latest LLM, GPT-4o (GPT-4 Omni). President Ryu explained, "In a smart home, if you say 'Hi LG, it's too hot here,' it responds with 'This function is not supported,' but in AI Home, AI FURON independently judges and says, 'The room temperature is 30 degrees, so the air conditioner needs to be turned on,'" adding, "(Through FURON, ThinQ ON) understands context, recognizes appliances and Internet of Things (IoT) devices, and executes actions."
It is also interesting that even home appliances without AI functions but connected to Wi-Fi can be upgraded to AI appliances by combining them with ThinQ ON. Instead of buying new AI appliances, customers can purchase sensors that connect to ThinQ ON to implement a reasonable AI Home with existing appliances.
President Ryu said, "For existing older appliances equipped with Wi-Fi or appliances like air conditioners operated by remote control, IoT devices with IR controllers can be upgraded," adding, "Although it may not be 100% identical to new products, the new function courses can operate as if they are part of the product."
He emphasized, "Just as laptops are upgraded, it is right that appliances also become upgradable when new functions emerge, and we will lead that world."
To expand the connectivity of such AI Home, LG Electronics plans to integrate the extensive open ecosystem and connectivity of the smart home platform company 'Athom,' acquired in July, into ThinQ ON. Athom's hub currently connects about 50,000 types of home appliances and IoT devices, and its app store hosts about 1,000 applications that connect and control products and services from various global brands such as Philips and Aqara.
Jung Ki-hyun, Vice President and Head of LG Electronics Platform Business Center, said, "LG AI Home is based on an open ecosystem, enabling infinite interconnection and expansion with external products and services," adding, "Customers can configure and enjoy AI Home tailored to their lifestyle by using the products and services they want."
In addition to ThinQ ON, LG Electronics is preparing a mobile AI Home hub (project name: Q9). Q9 is equipped with multimodal sensing capabilities combining voice, sound, and image recognition, and moves around spaces to care for customers. The official name of Q9 has not been decided, and it is expected to be released around next year.
LG Electronics ultimately plans to develop AI Home into an 'Intelligent Space' solution that expands to various spaces where customers stay. President Ryu said, "In spaces such as commercial areas or mobility, we will maintain continuous relationships with customers and provide differentiated value through AI space solutions combining products and services," adding, "We will think about and act on customers' changed lives."
Meanwhile, the AI Home market is growing rapidly. TechNavio estimates that the global smart home market size will grow from $81.28 billion in 2023 to $260.235 billion (approximately 361 trillion KRW) in 2028, with an average annual growth rate of 26.23%.
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