Hyundai Motor Group is accelerating its AI transformation (AX) as it transitions from an automotive manufacturer to a future mobility and physical AI company. The group is focusing on embedding an AI culture throughout its organization, moving beyond merely implementing generative AI in its operations. The company has demonstrated its competitiveness by integrating AI across all areas, from manufacturing to after-sales service.
On August 12, Hyundai Motor Group held the 'AX Performance Announcement (Beyond AI, Transforming the Way We Work)' at its headquarters in Yangjae, Seoul, where it unveiled plans for its digital transformation (DX) and AX initiatives that have been gradually implemented since 2019.
The event aimed to showcase how Hyundai Motor Group has prepared the groundwork for AX through digital transformation even before AI technologies became mainstream, highlighting key achievements and future directions. The company explained that as the mobility industry shifts from a manufacturing-centric model to one focused on data and software competitiveness, it is strengthening the internalization of AX across its organization.
Jin Eun-sook, President of ICT at Hyundai Motor and Kia, stated, "AI is an important technology, but ultimately it is a tool that companies must utilize. The speed at which we understand and apply new technologies, including AI, to our work and business is crucial for organizational competitiveness. Therefore, Hyundai Motor Group is expanding AX by internalizing intelligent technologies, including AI, based on DX."
To innovate the way employees work, the company introduced several collaborative platforms in 2022, including JIRA, Dooray, and Confluence, which supports document co-authoring and knowledge sharing. Since the implementation of these platforms, employees have been able to quickly check the status of company-wide operations and major project progress, enhancing transparency in collaboration and information sharing across departments.
In 2022, the group also adopted Microsoft's cloud-based collaboration platform, Microsoft 365 (M365), to enable global operations to collaborate in a unified work environment. M365 allows companies to access necessary services through the cloud instead of installing and operating software individually, connecting email, calendar management, document creation, and video conferencing into a standardized collaboration system across global sites.
Notably, research and development teams in autonomous driving and hydrogen sectors, which previously could not use external collaboration tools due to security regulations on key national technologies, are now able to utilize the same platform thanks to expedited guidelines from government agencies. This has allowed for the sharing and accumulation of information that was previously scattered across the organization, establishing a foundation for continuously securing digital assets that AI can utilize.
In the data sector, the group operates a 'Global One Data Pipeline' that standardizes and connects data dispersed across the entire value chain, including research and development, production, quality, and sales. As a result, information generated during the development process is utilized in production and quality management, creating a virtuous cycle where data collected in sales feeds back into product development and process improvement.
Additionally, the in-house generative AI platform, 'H Chat Pro,' is being used to expand the AI culture throughout the organization. H Chat Pro is Hyundai Motor Group's dedicated AI platform that allows employees to select and utilize various external generative AI models, such as ChatGPT, Gemini, and Claude, in a secure environment. Since last year, it has been available for all employees to use freely in their work. As of last month, there were 30,000 users of H Chat Pro, accounting for about 80% of Hyundai and Kia employees in general and research positions.
During the event, representatives shared examples of how H Chat Pro has enhanced work productivity and cost efficiency. For instance, the 'Collision Safety AI Assistant' is an AI-based research and development system that integrates and searches research information previously scattered across various systems, such as past collision test results, test images, and interpretation materials, enabling quick comparison and analysis of similar cases.
Hyundai Motor Group has built an environment where engineers can connect research information using AI, allowing them to analyze and reference not only the test conditions and vehicle structures of similar collision cases but also the causes of injuries and improvement measures. This has enabled engineers to reduce the time spent on data collection and review by approximately 90%, allowing them to apply the saved time to high-value tasks such as interpreting analysis results, improving designs, and developing testing strategies.
In manufacturing, AI is being utilized to enhance quality control and operational efficiency in production processes. The 'AI Automation Recognition Service' is a vision AI-based solution that verifies and cross-references vehicle identification numbers (VIN) in real-time against the vehicle information registered in the system. Previously, workers had to manually verify vehicle information, but with AI image recognition technology, VINs can be automatically read, allowing for early detection and response to operational errors. This service has been implemented across all Hyundai and Kia factories and 70 global production sites in the U.S., Europe, India, and the Asia-Pacific region, achieving an annual cost-saving effect of 5.24 trillion won.
There is also 'Trolley Alignment Optimization Technology,' which optimizes the complex movement paths occurring in the trolley process that supplies parts to the production line. Previously, if the trolley order was disrupted due to equipment errors, workers had to manually determine and restore the movement path. However, by combining AI technology, the optimal path is automatically derived, reducing unnecessary production downtime by approximately 86%.
AI utilization is also expanding in the service sector. In overseas maintenance sites, the LLM-based 'Maintenance Support AI Service' allows technicians to quickly identify the causes of issues and response measures without complex maintenance manuals. By inputting vehicle error codes or symptoms in natural language, the AI analyzes relevant manuals and past maintenance records to provide optimal diagnostic results, reducing maintenance response time by about 42%.
Hyundai Motor Group defines AX not merely as the adoption of technology but as an organizational culture innovation. The company explains that the proactive AX transformation is driven by an internal culture that swiftly embraces new technologies and translates them into actual work innovations. Building on its accumulated data assets, operational experience, and AI utilization capabilities, the group plans to expand innovations in vehicles, robotics, and physical AI.
Furthermore, based on its AX experience and know-how, the group will actively promote the spread of AI transformation across the domestic industry and support small and medium-sized enterprises in their AX efforts. Jin, the ICT head, stated, "Hyundai Motor Group's goal is not to be the company that uses AI the most, but to be the company that utilizes AI the best in the world. We will continue to strengthen our capabilities to learn new technologies the fastest and apply them in the field to connect customer value with business results."
* This article has been translated by AI.
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