Naver is entering the defense artificial intelligence (AI) market.
According to the IT industry on June 1, Naver Cloud has established a dedicated organization for defense AI transformation (AX) and is expanding its AI business tailored for the defense sector. This new team will be led by Kim Yoo-won, the CEO of Naver Cloud, who oversees all AI operations at Naver.
Naver's move into the defense AI market is driven by the growing demand for sovereign AI and public AX solutions. The defense AI sector is sensitive to security and regulations, making it challenging to apply foreign cloud or overseas AI technologies, thus presenting opportunities for domestic companies. This shift allows Naver to establish a stable business-to-government (B2G) revenue base, moving away from consumer-focused AI services.
After Naver Cloud was not selected for the Ministry of Science and ICT's 'Independent AI Foundation Model' support project, the company assessed that its infrastructure, models, and services could be effectively applied to the defense AI field.
A Naver representative stated, "We believe that the defense AI sector is a suitable area for applying our capabilities across all fields from infrastructure to services, which is why we established a security organization. With our full-stack AI capabilities based on domestic cloud infrastructure, we are preparing to enter the defense sector."
An industry insider noted, "It seems feasible to design cloud solutions or generative AI models specifically tailored for the defense environment. The government's increasing demand for defense AI will also positively impact Naver."
However, there are cautious perspectives regarding the introduction of defense AI. The nature of defense is sensitive to security, making it difficult to approach simply by implementing high-performance AI models. Utilizing classified information for AI training or inference could lead to issues such as data leaks, misjudgments, and accountability concerns.
Experts believe that AI utilization will proceed after classifying security levels and data grades, considering the defense environment. If discussions on collaboration between Naver and defense AX operations progress, a phased learning approach based on information types will be necessary. Initially, AI is expected to be used for administrative and operational improvements.
Kwak Jin, a professor at Ajou University’s Cybersecurity Department, stated, "Defense AI can be utilized for both administrative and operational improvements, as well as in actual battlefield environments, so its application range is diverse. However, simply introducing AI does not solve all problems. In military contexts, caution is essential from the outset of the implementation process."
* This article has been translated by AI.
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