Companies Adopting AI Show Higher Performance Than Non-Adopters
Productivity Effects Remain Unclear
Overall AI Adoption Rate at 6.4%... Manufacturing Sector Only at 4%
Concerns Over Widening Gap in Adoption Between Industries
Need for Infrastructure, AI-Specialized Hubs, and Talent Development
Companies that have adopted AI have achieved significantly better results in both sales and added value compared to those that have not implemented AI.
According to a report released by the Korea Chamber of Commerce and Industry's Sustainable Growth Initiative (SGI) on June 8, companies that introduced AI saw an average increase of 4% in sales and 7.6% in added value. SGI analyzed data from the Statistics Korea Corporate Activity Survey to examine differences in performance between companies that adopted AI and those that did not from 2017 to 2023.
Comparing changes before and after adoption, as well as differences between adopters and non-adopters, the report found that the proportion of high-performing companies increased after adopting AI, and that overall, both performance and productivity levels were higher among AI adopters.
However, the effect on productivity was not statistically significant. SGI explained that this could be due to the J-curve effect, where it takes time for performance to materialize after AI adoption, or due to data limitations.
The AI adoption rate among all domestic companies was 6.4% as of 2023, up from 2.8% in 2018. In particular, the rate increased sharply after 2022, when generative AI became widespread. By industry, the information and communications sector had the highest adoption rate at 26%, followed by finance and insurance, and education services. In contrast, the manufacturing sector was at only 4%, highlighting a clear gap between industries.
SGI expressed concern that if AI adoption in manufacturing lags, Korea could fall behind competitors such as China. The report pointed out that it is difficult to use general-purpose AI in manufacturing due to complex environmental factors, making the development of industry-specific AI technologies crucial.
The report suggested three key tasks to improve productivity in the future: first, continued investment in infrastructure and workforce to promote AI adoption; second, the creation of AI-specialized hubs focused on manufacturing; and third, the establishment of a talent development system, including practical AI training and expert matching.
SGI emphasized that for AI technology to deliver tangible benefits to companies, it is essential to go beyond simple technology adoption and ensure that management exercises strategic decision-making capabilities.
Previously, the Korea Chamber of Commerce and Industry had announced the '333 Strategy,' which includes building AI infrastructure, promoting AI adoption in manufacturing, securing data, power, and talent, and establishing an AI regulatory framework, and proposed ten major policy tasks to the government.
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