Kim Dong-myung, president and chief executive officer (CEO) of LG Energy Solution, set an ambitious goal to improve companywide productivity by 50% by 2028 through AX (AI transformation) as a "winning innovation."
On the 13th, Kim Dong-myung stressed in a CEO message to all employees that "AX is an essential task directly tied to survival," and shared a strong AX execution strategy to secure unrivaled competitiveness.
Kim described the current global battery market as a "tilted playing field," noting that rivals are waging a human-wave competition backed by massive policy support and large-scale manpower. He said, "It is hard to expect meaningful odds of victory by responding with simple quantitative competition," adding, "We must change the rules of the game through AX, focusing on 'core assets and talent.'"
Kim cited LG Energy Solution's numerous flagship patents and other intellectual property, its nearly 30 years of accumulated track record, and its talent with rich capabilities as core asset, emphasizing, "If these asset combine with AX to create synergy, it could be a Critical opportunity to change the terms of competition."
LG Energy Solution significantly raised its companywide goal, set at the start of the year as "improve productivity by 30% by 2030," to "improve productivity by 50% by 2028." With competitors also ramping up large dedicated organizations and investments, the company judged it must achieve a more challenging target faster to seize the opportunity.
The company also decided to build a strong support system to firmly establish a successful AX framework. Kim said, "AX is a complex task that must address the complexity of manufacturing, the security of national core technologies, and on-site adoption systems together," promising strong leadership and a sophisticated companywide support structure.
A monthly "AI governance committee" chaired directly by the CEO will review issues related to adopting AI solutions as well as security and change management. The company also plans to introduce an enterprise AI platform in stages, starting with areas outside national core technologies, and to greatly expand companywide AI training.
Kim also dismissed concerns about job insecurity stemming from AI adoption. "Just as you need to understand the principles of calculation to use a calculator properly, AI can be used better by someone with seasoned experience who can define and structure problems," Kim said, adding, "AX is a change that frees people from inefficient tasks and enables them to focus on the 'real work' that creates business impact."
He went on, "Trying, getting feedback, and making quick improvements is how we drive AX," and urged, "Let's create together the 'winning innovation' that will change the terms of competition and build unrivaled competitiveness that no one can easily follow."