AI-focused transformation and strategic mergers and acquisitions advocated by the CEO of GS
South Korean retail-to-energy conglomerate, GS Group, has announced a company-wide push for an artificial intelligence (AI)-driven business transformation. The move aims to tackle the challenge of slowing performance in its key subsidiaries and strengthen the company's competitive edge for future growth.
During a mid-year strategy meeting held in Gapyeong, Gyeonggi Province, on Wednesday, GS Group Chairman Heo Tae-soo outlined the group's plans. He emphasised the need to integrate the extensive knowledge and data accumulated across its business sectors through AI to create new business opportunities and enhance collaboration between subsidiaries.
The transformation strategy places technology at the core of GS Group's strategy, rather than treating it as a mere tool. Technology, especially artificial intelligence and physical AI, is being positioned as a fundamental driver for business transformation. Emphasis is placed on streamlining production processes, adopting robotics through physical AI, and exploring emerging technologies such as quantum computing, which GS Group views as pivotal for future industrial changes.
A proprietary AI transition platform named "Smile" has been developed to support these initiatives and operationalize AI-driven innovation within the group. The platform is expected to play a crucial role in supporting the group's strategic collaborations and mergers and acquisitions (M&As) focused on enhancing its AI capabilities and expanding its technological footprint.
GS Group's major affiliates are expected to contribute by applying AI-based strategies and by strengthening strategic networks within the venture ecosystem. The collaboration between subsidiaries is actively encouraged, leveraging their combined data assets for mutual growth and innovation. Executives from subsidiaries participated in the mid-year strategy meeting to discuss and implement these AI-driven transformations.
Heo Tae-soo emphasised the importance of streamlining production processes and adopting robotics through physical AI as a key turning point for the group. He also stated that the company's knowledge and data are its strongest assets, and urged executives to take steps toward external business expansion.
The group aims to not only build on internal AI innovation but also to pursue external business expansions through more strategic and execution-focused deals. GS Group plans to accelerate M&As focused on enhancing its AI capabilities and expanding its technological footprint. Heo emphasised the need for a more strategic and execution-focused approach for such mergers and acquisitions.
In summary, GS Group is embracing a comprehensive AI-forward transformation strategy to strengthen its competitive edge and future growth, driven by internal innovation in AI platforms, strategic collaboration among subsidiaries, and targeted external growth through AI-centric M&As. The goal is to lay a strong foundation for future growth by fully embedding AI across business operations and exploring new, AI-enabled markets and sectors.
- As part of this AI-driven business transformation, GS Group aims to leverage artificial intelligence and physical AI to streamline production processes, adopt robotics, and explore emerging technologies such as quantum computing, focusing heavily on internal AI innovation and external growth through strategic mergers and acquisitions.
- Emphasizing the need for a strong foundation for future growth, GS Group Chairman Heo Tae-soo called for the integration of vast knowledge and data across the company's business sectors, using AI to create new business opportunities, strengthen collaboration between subsidiaries, and expand the group's technological footprint.
