Lee Jae-yong's Samsung is undergoing an AI-driven transformation of its business methods and organizational culture, not just its products.

*This content was translated by AI.

On the 9th, Samsung announced it is fully launching AX (AI Transformation), a strategy to integrate AI across all business operations and redesign organizational management around AI. The plan aims to fundamentally change how work is done and reshape organizational culture by embedding AI throughout the entire value chain—from research and development (R&D) to production, marketing, sales, service, and administrative support.

This move is seen as a follow-up to Samsung Electronics Chairman Lee Jae-yong's New Year's address this year, in which he emphasized, "We must completely overhaul our work methods and organizational DNA," and "AI must be integrated into all business value chains, from R&D to production, marketing, and support."

Samsung has led the market with the world's first 'AI phone,' the Galaxy S24 series, as well as AI home appliances and AI glasses. Now, the company is advancing a strategy to shift not only its products but also its work methods and organizational culture toward AI.

Samsung's current AI transformation goes beyond simply using generative AI tools in daily work. It treats AI not as a new technology or auxiliary tool, but as a core infrastructure for management innovation. The strategy involves applying AI to eight key business processes—development, procurement, manufacturing, logistics, marketing, sales, service, and administrative support—to boost productivity and transform decision-making approaches.

To achieve this, Samsung plans to introduce external generative AI services—including Google's Gemini, OpenAI's ChatGPT, and Anthropic's Claude—across all affiliates by the end of this month. This will expand AI usage beyond office and planning tasks like software and marketing to on-site operations such as development and manufacturing.

Samsung believes that "the CEO's AI literacy determines the success or failure of AX," and is therefore conducting an intensive AI training program called the "AX Bootcamp" for presidents of all affiliates. This marks the first time AI education is being delivered specifically to the Jeon (President) group.

The training will take place over two days at the Hoam Hall of the Human Resources Development Institute later this month. Approximately 50 presidents from all affiliates will participate in hands-on training to derive business innovation strategies using generative AI.

At the AX Bootcamp, the presidents are also expected to jointly declare an "AX Vision." Given the global industrial paradigm shift toward AI, the vision is expected to reflect a sense of crisis: without changing work methods and mindsets, any company could be eliminated in an instant.

Following the training for presidents, Samsung will conduct a three-day, two-night AI education program for all approximately 2,300 executives across affiliates from now until August 12, held at the Samsung Electronics Talent Development Institute and the Human Resources Development Institute's Innovation Hall.

One executive who completed the training said, "I was surprised to learn that systematic AI education enables such easy and extensive work capabilities," and added, "I felt an urgent need and a sense of crisis to immediately and fundamentally change how work is done on the front lines." Samsung plans to complete AI training for all employees by the end of this year.

Samsung has also established a dedicated AI organization across all affiliates. This team will formulate AX implementation strategies tailored to each business's characteristics, manage data and AI models, and nurture AI talent. While permitting full use of external generative AI, the organization will also build a sophisticated security framework to simultaneously achieve "expanded AI utilization" and "risk control."

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*This content was translated by AI.