SKT parades its AI wares at CES and steels itself for a bumpy year

Launched in 2023, SKT's three-layered AI Pyramid Strategy spans infrastructure including data centres, silicon and large language models (LLMs); imbuing its own front and back office systems with the power of AI; and pitching AI-powered services to consumers and businesses.

If the pyramid stacks up like it's supposed to, then SKT reckons it could generate $18.5 billion in AI revenue by 2028.

Elements of this strategy are clearly in evidence at CES this year.

For instance, the Korean operator is showcasing four AI data centre (AIDC) solutions that address energy consumption, operations, security, as well as AI itself, of course.

SKT's new personal assistant, Aster, is also on show ahead of its beta launch in March. Unveiled in November at SKT's AI Summit, it is aimed at international markets, beginning with North America.

Like most AI assistants, it is based on the premise that people still don't know how to use search engines properly, and therefore an entire data centre crammed with GPUs is needed so that a long, convoluted conversation can be conducted in order to address a basic query. It's the future, apparently.

One of the more useful applications of AI is protecting users from online harms. SKT is demoing a new solution at CES called ScamVanguard, which uses AI to detect and protect mobile financial fraud. Telcos meanwhile might also be interested in Litmus Plus, a system for analysing indoor and outdoor crowd and network data.

SKT is also getting into AI vision with its AI Quantum Camera that can analyse video in real time. The telco is pitching this at the robotics, security, media and medical sectors.

It is also showcasing some generative AI (GenAI) services, including its GenAd advertising production solution, and AI Media Studio, which SKT describes as a media processing and content improvement platform.

Finally, it wouldn't be CES without an invention that was a little out of left field – they help to grab the attention of the over-stimulated attendee. In SKT's case it seems to be something called X Caliber, which is designed to analyse pet X-rays and help vets figure out what Fido has swallowed this time.

It's an open question as to whether all these innovations have set SKT on the path to its lofty revenue target, but they underscore just how serious it is about its AI strategy.

Indeed, it's a strategy that SKT CEO Ryu Young-sang hopes will help his company weather a storm he sees coming this year.

In his new year address, he claimed that 2025 will bring about "an unprecedented crisis" caused by geopolitical issues, such as global economic instability, and a slump in domestic demand.

In addition to generating "tangible results" from its aforementioned AI business, SKT plans to achieve what it calls operational excellence by using AI to overhaul internal processes and cut down on waste.

"Ultimately, our goal is to evolve from a traditional telecommunications business to a forward-thinking AI enterprise, with steadfast focus on achieving both immediate profitability and enduring sustainability," he said.

If SKT is right, then 2025 will offer a stern test of the industry's collective strategic nous.