Within 3 Years, 30% AI Utilization Rate in Distribution Companies... Establishment of Distribution-AI Alliance

Ministry of Industry Announces AI Utilization Strategy for Distribution Industry

The government has decided to increase the utilization rate of artificial intelligence (AI) in the distribution industry and revitalize the related ecosystem, aiming to raise the AI utilization rate of domestic distribution companies to 30% within the next three years. Through this, the goal is to reduce inventory costs for distribution companies, shorten consumer delivery times, and cut total delivery costs by 20%.

On the 27th, the Ministry of Trade, Industry and Energy held a meeting on AI utilization in the distribution industry at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, and announced the "Distribution Industry AI Utilization Strategy," which includes these details.

The distribution industry is considered an industry where the value chain is complex and labor input is high, making the efficiency and optimization effects of AI utilization very significant. Global companies such as Amazon and Walmart are already actively pursuing innovation by utilizing AI.

The Ministry plans to establish an AI utilization strategy for the distribution industry to increase the current AI utilization rate of domestic distribution companies, which is less than 3%, to 30%?more than tenfold?within three years, aiming for a 20% reduction in inventory costs, a 10% reduction in consumer delivery time, and a 20% reduction in total delivery costs.

This strategy consists of ▲ increasing AI utilization rates in the distribution industry ▲ revitalizing the ecosystem for AI diffusion in the distribution industry ▲ establishing systems and foundations for AI utilization in the distribution industry.

First, a standard AI utilization manual that distribution companies can commonly use will be prepared. Based on the manual, AI utilization consulting will be provided to distribution companies, and support will be given for the development of around 20 AI utilization solutions. A "Distribution·AI Alliance," involving distribution companies, AI technology companies, infrastructure companies, and venture capital, will be created to discover and spread successful cases of AI utilization.

A new distribution sector fund worth around 100 billion KRW will also be established to invest in AI technology companies and small and medium-sized distribution companies in the distribution field. By 2028, more than 10 trillion KRW in corporate venture capital (CVC) funds will be used to support the activation of startups in distribution AI technology companies. AI competency education will be expanded for distribution-related master's and doctoral students, and 20,000 distribution personnel with AI utilization capabilities will be trained.

To expand distribution data, which is considered essential in AI and digital utilization, a "Standard Product Information Database" will be established, and the amount of data will be significantly increased from the current 400,000 cases to 1 million cases.

Oh Seung-cheol, Director of the Industrial Infrastructure Office, stated, "The distribution industry, which faces growth stagnation and intensified competition due to demographic changes and the entry of global distribution platform companies into the domestic market, requires innovation through AI utilization. The government will make every effort not only to innovate the distribution industry through the AI utilization strategy but also to enhance consumer safety and convenience."