[Edaily Reporter Kim Hyun-ah ] Jeong Jae-heon, CEO of SKTelecom(017670), identified “the process of enduring inconvenience” as the key to AI transformation. He explained that while productivity may actually decline initially after introducing AI, once this phase is overcome, the “J-curve of AX” emerges, leading to a sharp increase in productivity.

On the 1st, CEO Jeong delivered a special lecture titled “Choices and Opportunities in the AI Era” to approximately 300 undergraduate and graduate students at Seoul National University’s Engineering Building No. 1.

This lecture was organized as the first session of the “SKTelecom-Seoul National University Joint AI Program,” which SKTelecom and Seoul National University have been running for the past 10 years. It also marked CEO Jeong’s return to the lectern at his alma mater nearly 40 years after he first enrolled in the Department of Engineering at Seoul National University in 1987.

CEO Jeong said, “I didn’t come here to teach technology, but to share what a company at the forefront of the AI transformation is currently grappling with.”

“Productivity Declines Initially After Adopting AI… Must Overcome Inconvenience to Reach the J-Curve”

The point CEO Jeong emphasized most that day was the “J-curve of AX.”

Introducing AI does not immediately lead to higher work efficiency. In the process of learning new technologies, changing existing work methods, and organizing data, productivity may actually decline initially.

However, if an organization endures this period, productivity can rise sharply at a certain point. CEO Jeong likened this to the “J-curve,” a concept used in economics to explain the relationship between exchange rates and the trade balance.

He said, “If you turn back before reaching the ‘valley of discomfort,’ you’ll remain on the left side of the curve forever, but organizations that endure it will, at some point, take a sharp upward turn in the shape of a J.”

He also noted that the AI transition requires “seeing things as unfamiliar,” “facing extremes,” and “embracing discomfort.”

“Seeing things with fresh eyes” means not taking existing work processes for granted.

CEO Jeong explained that we must redesign work from the ground up with AI as a given, constantly asking questions such as, “Does this task really have to be done by a Saramin?” and “Is this the best sequence?”

“Confronting extremes” means taking on goals that are difficult to achieve using existing methods.

CEO Jeong cited the example of SKTelecom, which developed “A.X K2,” a proprietary AI model with 688 billion parameters, within a limited GPU environment. This model took first place in the second round of evaluations for proprietary AI foundation models organized by the Ministry of Science and ICT.

“Embracing Discomfort” means tolerating the initial inconveniences and inefficiencies that arise during the AI transformation process.

CEO Jeong also shared a real-world example. A developer at SKTelecom used to spend about 50 hours on system modifications requested by customers, but when automating this process with AI, it initially took over 500 hours.

This was because the developer had to create a new AI agent, modify it, and validate it hundreds of times.

However, he explained that as development continued, the same task can now be completed in about one hour.

“Even in the AI era, it is Saramin who set the direction and make value judgments”

CEO Jeong cited insight and empathy as the essential competencies for talent in the AI era.

“Although it may seem like AI will decide everything in this era, I don’t think so,” he said. “Insight and empathy—the ability to take the initiative and set one’s own course—will be key competitive advantages.”

He particularly emphasized to students the importance of first establishing expertise in their respective fields and then learning to leverage AI.

CEO Jeong said, “You must build expertise in your own domain and use AI to maximize productivity,” adding, “Furthermore, by connecting technology, industry, and Saramin across domain boundaries, you can create new opportunities.”

He also introduced the “Four Qualities of Talent in the AI Era” proposed by SK Group Chairman Chey Tae-won.

These are “thinking muscles” for seeing through to the essence of things; “adaptability muscles” for adapting to change and learning from failure; “empathy muscles” for understanding others; and “bodily intelligence” for turning embodied experiences into value.

CEO Jeong remarked, “None of these four are coding skills,” adding, “Since AI will become increasingly proficient at technology, the abilities unique to humans will define what constitutes talent.”

He went on to emphasize, “Judging values and making decisions will always remain the role of humans.”

“An Era of Asking, ‘What Will We Create with AI?’”

CEO Jeong assessed that AI is significantly accelerating the pace of change in industry and society.

He cited the example that while it took about 60 years for cars to become widespread and about 10 years for cell phones to become commonplace, ChatGPT surpassed 50 million users within just one month of its launch.

He also noted that competition in AI is expanding beyond individual companies to become a competition among nations. He explained that since relying on other countries’ technology makes it difficult to determine the terms of one’s own technology and services, it is crucial to secure independent AI capabilities.

CEO Jeong stated, “If 10 years ago we asked, ‘Can AI surpass humans?,’ today we are asking, ‘What will we create with AI?’” He added, “I look forward to meeting you all again—the ones who will create the answers to this question 10 years from now—as colleagues on the front lines of AI innovation.”