KTis, KT's customer service subsidiary, has raised the share of artificial intelligence (AI) consultations in its 114 directory assistance service to more than half, but it still failed to stop a decline in profitability. As smartphone search, map apps, and delivery and reservation platforms have become part of daily infrastructure, use of 114 has fallen. An "AI contact center (AICC)" can lift consultation productivity, but the results show it is hard to revive shrinking market demand.
◇ Raised AI consultations to more than half, but operating profit fell 26% in a year
According to the industry on the 14th, the AICC handling rate for KTis's 114 directory assistance service rose from 48% in 2024 to 52% last year. The structure has shifted so that more than half of directory assistance consultations are handled by an AI-based system. When AI takes on simple, repetitive inquiries, it can reduce the burden of managing consultation staff and improve response efficiency.
The problem is that demand fell faster than efficiency improved. Last year, KTis's directory assistance revenue was 18.3 billion won, down 12.8% from 21.0 billion won a year earlier. Compared with 24.3 billion won in 2023, it fell 24.7% in two years. The drop in profitability was larger than the decrease in revenue. KTis's directory assistance operating profit was 4.1 billion won last year, down 26.2% from 5.6 billion won a year earlier. Over the same period, the operating margin fell from 26.7% to 22.6%. Although it raised the AI consultation rate, fixed operating costs, system investment burdens, and declining usage all at once limited its ability to defend profitability.
A KTis official said, "Calls are plummeting due to the business structure, and with fixed costs related to the AI transition and rising labor costs, the rate of profit decline is greater than the drop in revenue."
The KTis case shows that adopting AI does not lead to growth in every business. AI is a tool that reduces the burden on consultation staff and raises response efficiency, but in businesses where the user base itself is shrinking, there are limits to stopping a decline in revenue. If automation translates into improved profitability, it can lead to staff redeployment and labor issues, making 114 a test bed that reveals both the potential and limits of an AI contact center transition.
KTis was established in 2001 when KT's 114 directory assistance service was spun off. While 114 was the background of its launch, it later expanded into KT customer centers, general contact centers, and distribution. It currently operates the 114 directory assistance business under commission from KT. To improve productivity, KTis introduced the 114 AICC system in Sept. 2022 and now runs a 24-hour AI consultation system.
◇ KTis, with a high share of call staff… the 114 AI shift is a test bed for workforce efficiency
KTis is a company where frontline roles handling call work account for an overwhelming share. As of the end of 2025, of 9,088 total employees, 8,805 were frontline staff, accounting for 96.9%. A higher AICC handling rate also means that automating consultation work can directly affect the staffing structure.
KTis's main business has already shifted from directory assistance to contact centers. Based on last year's revenue, the KT customer center business (handling customer consultations for KT's telecom services) accounted for 44.6%, and the general contact center business (entrusted operation of customer centers for external corporations and public institutions, not KT) accounted for 32.4%. By contrast, directory assistance accounted for only 3.1%.
The key is whether it can expand the AICC operation experience accumulated with 114 into the external contact center market. KTis is advancing its contact center business by promoting AICC services based on chatbots, AI consultation response, speech recognition, and text analysis. The general contact center business includes entrusted operation, staff dispatch, and system and solution services for corporations, public institutions, and hospitals. Last year, it sold its digital advertising business and absorbed HNC Network, a contact center company in the finance sector, pushing a shift to a contact center-centered structure.
A telecommunications industry official said, "In businesses like 114 where the user base is shrinking, it is hard to offset falling revenue with automation alone," adding, "If strengthening profitability through AICC in the 114 directory assistance business had been verified, staff adjustments in KTis's main customer center business and general contact center institutional sector would have accelerated."
Another telecommunications industry official said, "AI is a tool that reduces the burden on consultation staff and raises response efficiency, but the KTis case shows that adopting AI does not directly lead to growth in every business," adding, "If automation leads to improved profitability, it can result in staff redeployment and labor issues, making the long-running 114 a test bed that reveals both the potential and limits of an AI contact center transition."