[The Road to M.AX③] AI Cannot Grow Alone... The Answer Is "Connection"

AI Companies Bring Technology, Manufacturers Bring Field Expertise... Alliance Bridges the Two Pillars
From Industrial Complex Demonstrations to Supply Chain Expansion
"Connection" Determines Competitiveness in Manufacturing AI

When Germany unveiled its "Industry 4.0" strategy in 2011, its primary focus was not on technology, but on building a collaborative ecosystem. The country developed a structure where manufacturing companies, software firms, universities, and research institutes participated together, using this foundation to drive manufacturing innovation. More recently, Germany has broadened this approach to include small and medium-sized manufacturers through a data-sharing platform called "Factory-X."

The United States is also focusing on spreading AI throughout the industrial sector by connecting manufacturing companies with AI firms, centered around the Manufacturing USA initiative. The global competition in manufacturing is now shifting from who can develop the most advanced AI to who can most rapidly spread AI across the entire industry.

Korea's government has launched the M.AX Alliance and, in succession, the MINI Alliances for each industrial complex in the same context. The goal is to spread the success of a leading company throughout entire industrial complexes and supply chains, thereby boosting the competitiveness of the manufacturing sector.

AI Companies Know Technology, Manufacturers Know the Field

The slow spread of AI is not due to a lack of technology. AI companies possess excellent algorithms but often lack a deep understanding of actual manufacturing processes. Conversely, manufacturing companies have accumulated decades of production know-how and data but struggle with how to apply AI on the shop floor.

The government launched the M.AX Alliance last year to bridge this gap. The idea is to bring together manufacturing companies, AI firms, universities, and research institutes to jointly develop AI models, verify them in real-world settings, and then spread these models to other companies through a cooperative framework.

On May 27, Minister Kim Jungkwan of the Ministry of Trade, Industry and Energy visited Seongsimdang at Lotte Department Store Daejeon branch to inspect the AI factory demonstration site applying AI to the production process of fried soboro. Ministry of Trade, Industry and Energy.

A representative example of such collaboration is Seongsimdang in Daejeon. In this case, the AI solution provider ROILabs and the robotics company Intertek participated together to apply AI and robotics technology to every stage, from dough input to frying, defect detection, and packaging. The manufacturing company provided the production site, while the AI firm supplied the solutions, creating a collaborative model.

The government's "Industrial AI Solution" project is also designed on the premise of such collaboration between manufacturers and AI specialists. The approach is to rapidly apply proven AI models owned by AI specialist firms to manufacturing processes by fine-tuning them for each company's needs. Rather than developing new AI from scratch, companies enhance already verified AI technologies to fit their operations, thereby increasing productivity.

The Ministry of Trade, Industry and Energy conducted demonstrations with about 30 manufacturers last year and plans to support an additional 30 companies this year to spread successful cases throughout the industry. A budget of 12.8 billion won will be allocated this year alone.

From the Success of a Single Factory to the Industrial Ecosystem

The government is approaching M.AX not as an individual company support project, but as a strategy to transform the entire manufacturing ecosystem. The core elements are establishing industrial complexes as demonstration hubs, supporting commercialization through finance, and accumulating manufacturing field expertise as AI assets.

The most heavily promoted initiative at present is the industrial complex-centered expansion strategy. The M.AX Alliance launched in September last year with 10 divisions and about 1,000 participating organizations. In February this year, the addition of the Industrial Complex AX Division expanded it to 11 divisions and about 1,500 organizations. This has established a nationwide collaborative structure involving manufacturing companies, AI specialists, universities, and research institutes.

The government has also added 10 MINI Alliances for each industrial complex. While the M.AX Alliance is a nationwide platform, the MINI Alliances are operational teams that demonstrate and spread AI at the industrial complex level. For each region's key industries—such as Ulsan petrochemicals, Gwangju future mobility, and shipbuilding in Daebul, Busan, and Gunsan—manufacturers, AI firms, universities, and research institutes are grouped together to identify AI needs for each process and spread proven models to other companies in the same sector.

Ulsan is a prime example. SK Energy is conducting AI demonstrations in process, facility, and safety management based on more than 100 billion manufacturing data points. The government plans to spread the verified AI models obtained through this process to small and medium-sized enterprises within the Ulsan industrial complex, then to other petrochemical complexes, and eventually to industrial complexes nationwide. Kim Jung-kwan, Minister of Trade, Industry and Energy, stated, "What I saw at the SK Energy plant was not just a production line, but another pipeline flowing with data, AI, and innovation," adding, "We will ensure this pipeline extends from Ulsan to all industrial sites across Korea."

Financial support is also a key pillar in the expansion of M.AX. The National Growth Fund-M.AX Frontier Project, which was launched this month, is an investment platform connecting manufacturing AI firms with manufacturers. The approach links finance so that AI solution providers can validate their technology in real manufacturing environments and carry through to commercialization. The goal is not simply to support R&D funding, but to build an ecosystem where AI suppliers and manufacturers can grow together.

However, the establishment of such a connection structure by the government does not guarantee the immediate spread of M.AX. Standards and security systems that allow manufacturing data to be shared safely, as well as regulations that enable companies to use AI with confidence, must be put in place. In reality, concerns about data leaks, personal information issues, and differing data formats between companies are still cited as obstacles to AI adoption. Another challenge is addressing the shortage of professionals needed to operate and advance AI after its introduction.

Minister Kim also commented, "There have been practical difficulties hindering the use of data and the M.AX initiative, such as security and regulatory issues, personal information, standardization, and a lack of specialized personnel," adding, "We will speed up institutional improvements to resolve these obstacles."

This content was produced with the assistance of AI translation services.