LG Electronics is preparing to implement a customized ChatGPT solution for home appliance research and development by the third quarter, according to industry sources, as the Korean manufacturer seeks to accelerate innovation while facing mounting pressure from Chinese competitors.
The company’s HS Business Division R&D Research Center concluded pilot testing of the enterprise-grade AI tool last month, marking LG as the first major manufacturing company to adopt OpenAI’s technology for product development. While IT firms like Kakao and Krafton previously integrated similar AI services, LG’s deployment represents a broader shift toward artificial intelligence in traditional manufacturing.
The move comes as Chinese companies TCL and Hisense have been rapidly gaining market share, with LG Electronics falling from second to fourth place in global TV shipments. Market research firm Counterpoint Research reported that Chinese companies increased their premium TV market share in the first quarter while LG’s position deteriorated.
An industry insider cited the need to compete with Chinese companies that “work six days a week on low wages and focus on technological development,” emphasizing the importance of improving R&D efficiency. The enterprise ChatGPT solution allows companies to fine-tune the AI with proprietary data on products, services, and customers, potentially streamlining development processes.
LG’s AI implementation reflects broader manufacturing trends, with industry projections showing that by 2025, more than 60% of new product introductions in manufacturing will utilize generative AI for design and concept creation. Research indicates AI can accelerate R&D processes that traditionally required significant time and resources.
The Korean electronics giant has been investing heavily in AI capabilities, including partnerships with Microsoft and development of what it calls “Affectionate Intelligence.” However, the company faces challenges beyond technology adoption. Chinese manufacturers have captured 39.1% of global TV market share in the first half of this year, up 2.7 percentage points from the previous year, while Korean manufacturers’ share declined correspondingly.
LG’s revenue reached approximately $64 billion in 2023, with its Home Appliance & Air Solution segment generating around $23 billion. The company’s success in implementing AI for R&D efficiency could determine its ability to maintain competitiveness against aggressive Chinese expansion in global markets.
