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Four in five Korean manufacturers not using AI due to cost, doubts about usefulness

Published: 18 Nov. 2025, 18:30

Visitors at the 2025 AI Summit Seoul & Expo look at booths at Coex in Gangnam District, southern Seoul, on Nov. 10. [YONHAP]

A majority of Korea’s manufacturers are lagging in the shift to AI, with most firms citing high costs, a shortage of skilled workers and doubts about its usefulness, according to survey data released Tuesday.

A survey of 504 manufacturers showed that 82.3 percent do not use AI in production, logistics or other management functions, with large companies reporting a 49.2 percent adoption rate and small and mid-sized firms only 4.2 percent, according to the Korea Chamber of Commerce and Industry (KCCI).

Companies point to financial pressure as the biggest obstacle. According to the survey, 73.6 percent say AI investments strain their budgets. That burden weighs more heavily on smaller companies at 79.7 percent, compared to 57.1 percent for large firms.

“Even for production processes alone, switching to AI requires money for labeling and sensors to accumulate data, installing CCTVs, cleaning the data, planning how to use it, building customized solutions for robot operations and deploying personnel,” said a Daegu-based manufacturer. “These are costs we never imagined.”

The shortage of AI specialists also hampers progress. When asked whether they have dedicated AI talent, 80.7 percent of companies said they do not. Only 14.5 percent plan to retrain existing staff and 3.4 percent plan to hire new workers.

The report notes that Korea has about 21,000 AI specialists, far fewer than China’s 411,000, India’s 195,000 and the United States’ 120,000.

It adds that “the absolute number is small and even the available talent is leaving.”

Companies also remain unsure that AI will deliver meaningful results. When asked if they expect AI adoption to improve performance, 60.6 percent say the effect will be minimal.

The report explains that “manufacturers must invest considerable money and manpower to introduce AI, which increases doubts about whether the returns justify the effort.”

To raise AI adoption in manufacturing, the KCCI recommends tailored support based on company capabilities and regional test bed projects for manufacturing AI.

“Many manufacturing companies need verified best-practice cases as soon as possible so they can feel the impact of AI performance,” the KCCI said.

“The Ministry of Trade, Industry and Resources and Ministry of SMEs and Startups should expand their AI factory and manufacturing AI center programs to create an environment where companies can see real improvements in production efficiency,” the chamber added.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM SU-MIN [[email protected]]