In a bold move to reinforce its position in telecommunications and artificial intelligence, SK Telecom (SKT) has announced a significant organizational restructuring. Emphasizing 2025 as a pivotal year for growth and innovation, CEO Yoo Young-sang outlined ambitious plans to enhance both telecommunications and AI sectors. The company aims to leverage its reorganization to streamline operations and foster innovation. This includes the establishment of seven business divisions, with three dedicated to core telecom operations and four specifically focused on AI.
Telecom Division Advances
Core Telecom Operations
The core telecom operations will be divided into three main business units: the MNO business, the wireline/media business, and the enterprise business. SK Telecom’s MNO business will focus on strengthening its mobile network operations, aiming to improve customer experience through enhanced connectivity and innovative services. This division is expected to drive growth by offering competitive mobile plans and leveraging the latest 5G technology to deliver high-speed, reliable internet access to users.
The wireline/media business will revolve around optimizing SKT’s existing wireline services and digital media platforms. With the increasing demand for high-quality content and seamless connectivity at home, this business unit will prioritize expanding broadband services and enhancing digital entertainment offerings. The enterprise business unit, on the other hand, will cater to B2B operations, providing solutions such as messaging, advertising, and payment services. This division aims to support businesses by offering advanced telecommunications services tailored to their specific needs.
Focus on Enterprise Solutions
The enterprise division will handle messaging, advertising, and payment services, offering advanced solutions to business clients. By concentrating on these core areas, SK Telecom aims to provide robust and scalable services that meet the evolving demands of modern businesses. The focus on enterprise clients is expected to drive growth by tapping into new markets and forming strategic partnerships with other leading companies.
Moreover, the AIX Division will be dedicated to AI-related business innovations, working on cutting-edge technologies that enhance SKT’s service offerings. This division will focus on developing AI-driven solutions that can be integrated into telecommunications services, providing intelligence and automation to improve efficiency and customer satisfaction. The AI Data Center Division will expand GPU cloud and AI data center services, ensuring that SK Telecom remains at the forefront of AI infrastructure development. This expansion will support the growing demand for AI computing power and storage, essential for running complex AI models and applications.
Embracing AI Innovation
AI R&D Center
SK Telecom has merged its AI R&D efforts to strengthen its digital transformation initiatives through the creation of an AI R&D Center. This center will support the development of advanced AI technologies such as digital twins and AI factories. By consolidating research and development activities, SK Telecom aims to accelerate the innovation process and ensure that new AI solutions are brought to market more quickly. The AI R&D Center will also foster collaboration with academic institutions and industry experts to drive advancements in AI technology.
In addition to the R&D Center, the AT/DT Center will integrate transformation efforts across SKT and SK C&C, promoting a unified approach to AI and digital transformation. This center will focus on implementing AI-driven processes and solutions within the company, optimizing operations, and enhancing customer experience. The integrated approach ensures that all divisions within SK Telecom are aligned with the overall strategic objectives, facilitating seamless digital transformation across the organization.
AI Personal Assistant Development
One of SK Telecom’s most promising projects is the development of ‘Aster (A*)’, an AI-driven personal assistant designed for global users. Scheduled for a closed beta launch in North America later this year, with a full launch planned for 2025, Aster aims to revolutionize the way users interact with technology. Unlike traditional personal assistants that offer basic Q&A functionalities, Aster is designed to understand users’ intentions deeply, set goals, make plans, and complete tasks efficiently. This level of intelligence and functionality sets Aster apart from existing AI assistants, positioning it as a game-changer in the industry.
Additionally, the company is enhancing its AI service “A.”, transforming it into a more sophisticated AI personal assistant to improve daily convenience for customers. This service leverages SK Telecom’s proprietary large language model (Telco LLM) and large multimodal model (LMM), which have been refined through rigorous testing and reinforcement learning in collaboration with global LLM companies. The advancements in AI technology are expected to provide users with a more intuitive and personalized experience, enhancing the overall quality of service.
Strategic Appointments and Future Prospects
Emphasis on Youthful Leadership
SK Telecom has also made strategic executive appointments emphasizing younger professionals with expertise in communications and AI. This move is designed to infuse the organization with fresh perspectives and advanced technical know-how. By focusing on youth leadership, SK Telecom aims to bring innovative ideas and dynamic energy to its operations, driving forward its ambitious agenda in both telecommunications and AI. These new leaders are expected to play a crucial role in guiding the company through its digital transformation journey and pioneering new business ventures.
The recent launch of SK Telecom’s AI Customer Service Support System has demonstrated the company’s commitment to leveraging AI to enhance service quality. Powered by SK Telecom’s proprietary large language model (Telco LLM) and large multimodal model (LMM), this system has achieved promising results. By collaborating with global LLM companies, SK Telecom has tested and refined these AI systems to meet telecommunications service demands, showcasing the potential of AI to revolutionize customer service within the telecommunications industry.
Future Directions
In a bold strategy to cement its dominance in the telecommunications and artificial intelligence sectors, SK Telecom (SKT) has revealed a comprehensive organizational restructuring. This initiative, highlighted by CEO Yoo Young-sang, targets 2025 as a crucial year for substantial growth and groundbreaking innovation. The company plans to utilize this overhaul to streamline its operations and fuel creative advancements. Integral to this strategy is the creation of seven distinct business divisions. Among these, three divisions will concentrate on the core telecommunications operations, ensuring the company’s primary services remain robust and competitive. Meanwhile, the remaining four divisions will be expressly dedicated to artificial intelligence, underscoring SKT’s commitment to leading the AI revolution. This reorganization is designed to enhance SKT’s operational efficiency and place them at the forefront of cutting-edge technology, aligning with global advancements and consumer demands.
