LG Innotek (011070.KS) has introduced artificial intelligence technology that quickly identifies the components needed to develop new products from among more than 2 million types of parts and generates cost estimates.
The company said on the 20th that it recently completed development of an "AI parts recommendation system" and deployed it across all business divisions. The system has AI learn information on the components required to develop LG Innotek's core products, such as camera modules and semiconductor substrates, and then identifies the optimal parts within two hours based on the specifications needed during new product development. The system also cuts the time required to produce cost estimates for new products by 70% from previous levels.
LG Innotek handles about 2 million types of components, including capacitors and inductors. The parts data is vast, and information had previously been scattered across individual business divisions and outside partner firms, making the search for optimal components for new product development time-consuming. Names, specifications and units also varied by manufacturer.
The AI parts recommendation system addresses these limitations by standardizing parts data and learning it systematically. It also supports a "reference price" function that converts constantly shifting component market rates into current expected prices with more than 96% reliability. When a needed component is discontinued or in short supply and a substitute is required, the company expects the reference price to allow it to move quickly on transactions.
LG Innotek plans to upgrade the system by applying agentic AI so that it independently searches and analyzes the latest component information and updates the data on its own.
Kim Jun-sung, head of LG Innotek's purchasing center, said the system is "a meaningful innovation that has completely changed the existing approach, optimized for a manufacturer that handles a wide range of components." Kim added, "Through an AX-based way of working, we will deliver value that exceeds customer expectations."
