"Artificial intelligence could be a 'game changer' that elevates Korea's national competitiveness. However, success depends on securing sufficient field-ready talent and proven models that deliver real results."
Sylvain Duranton, Global CEO of Boston Consulting Group (BCG) X, made these remarks in an interview with The Seoul Economic Daily on Wednesday regarding the challenges facing Korea as it aims to become one of the top three AI nations (G3). BCG X is the technology build and design arm of global management consulting firm BCG, comprising approximately 3,000 global experts in AI, data science, engineering, and design.
"Global leading companies are already transforming AI from a simple automation tool into core operational infrastructure," Duranton said. "If Korea quickly absorbs this trend, it can enhance industrial competitiveness and create new opportunities for advancement."
He particularly noted the synergies that could emerge when AI is combined with industries where Korea holds a dominant position, such as semiconductors, manufacturing, and logistics. In other words, Korea could seize leadership in physical AI—the application of AI to industrial domains.
"Physical AI will not simply replace human workers but will 'support' humans in dangerous or demanding tasks," Duranton explained. "It can also function as an operational mechanism for transferring skilled know-how."
However, he warned that Korea's path to becoming an AI G3 nation will not be easy unless it addresses the "talent shortage." According to Duranton, Korea has strong AI investment intentions but lacks sufficient professionals with hands-on experience implementing and operating AI in real-world settings.
"The key to successful AI transformation (AX) is not just understanding technology but having 'ambidextrous talent' who can also grasp business context," he said. "How proactively companies secure human assets and organizational capabilities will determine the outcome."
He emphasized that another priority for the Korean government and companies should be creating "flagship success cases" where AI models are applied to core business operations.
"The speed of accumulating implementation experience is the key competitive advantage in the AX era," he advised. "Rather than listing numerous tests, Korea should quickly build success models in high-impact core areas and spread them across industries."
Duranton also stressed that achieving AI G3 status requires not just expanding investment but simultaneously building foundations to support AX. "It is important to establish data and computing infrastructure as well as institutional frameworks so AI can spread rapidly in key industries such as manufacturing, logistics, and finance," he said. "Rather than the government designating and pushing specific technologies, it is important to create an environment where the private sector can accumulate implementation experience in core areas."
Duranton warned that if Korean companies delay AI adoption, it could lead to structural imbalances in industrial competitiveness beyond just widening gaps.
"The gap between companies that have created real value through AI in global markets and those that have not is rapidly widening," he said. "If the transition is delayed, companies could find themselves at a disadvantage in cost structure, product quality, and supply chain responsiveness."
Regarding growing concerns about job displacement as AX accelerates, he said, "It is important for society to collectively support retraining and role transitions for human resources to mitigate the shock of change and build social consensus around the transition."
Duranton noted that global leaders he met at the recent World Economic Forum in Davos view this year as an "inflection point for AI transformation." The common perspective among global CEOs is that AI will become a "growth engine" driving companies' top-line growth from this year onward, beyond simply reducing costs or improving efficiency.
"AI is fundamentally redesigning the way markets compete," he said. "AX is now recognized not as a task for chief information officers or chief technology officers, but as a strategy that CEOs must personally lead and take responsibility for."