Seoul: Industry Minister Kim Jung-kwan on Monday emphasized the critical role of artificial intelligence (AI) in the survival and advancement of medium-sized enterprises, urging them to integrate AI technology into their operations without delay.

According to Yonhap News Agency, Kim compared the transformative potential of AI to that of the compass in the 15th century, which revolutionized exploration and reshaped global wealth and power dynamics. During a meeting with CEOs of medium-sized companies, Kim highlighted the necessity for these enterprises to navigate new paths in the global market using AI as their guiding tool.

The Ministry of Trade, Industry and Resources noted that Kim encouraged firms to take an active part in the nation's AI transformation (AX), stressing that embracing this advanced technology is crucial for their survival and expansion. To support this initiative, the government introduced the Manufacturing AX Alliance (M.AX) in September, aiming to link major firms with AI companies and research institutes. This alliance seeks to motivate manufacturing companies to incorporate AI technologies into their business models.

In his address, Kim assured that the government is committed to devising strategies to assist medium-sized firms in fostering AI transformation and transitioning to green energy. Additionally, he emphasized the importance of equipping these companies to manage uncertainties in global trade, particularly in light of the U.S. tariff policies and the ongoing restructuring of supply chains.