"AI Transformation Falls Short When Logistics, Production, and Data Operate in Silos"
- 2026.05.06

CEO Youngjae Jang emphasized at AI TECH 2026, the AI Convergence Business Development Conference, that the key to AI transformation in manufacturing lies not in automating individual pieces of equipment, but in establishing a Physical AI operating system that integrates logistics, production, and data into a single system. The conference brought together companies and experts in AI and manufacturing to discuss AI strategies for industrial applications. He explained that AI focused only on quality management or equipment management cannot maximize productivity or investment returns, and that meaningful ROI can only be achieved by designing the entire factory from a systems perspective.
He also emphasized the importance of adopting a strategy similar to Germany's, in which logistics infrastructure is established first before expanding automation. He noted that operational strategies should be validated in a virtual environment using digital twins and reinforcement learning (RL) before being deployed in actual factories. In addition, he introduced the Physical AI platform developed by KAIST, explaining that it integrates collaborative robots, logistics robots, and humanoid robots into a single operating system, enabling AI to orchestrate the entire factory within an autonomous manufacturing environment.