"AI is not magic...it must be connected to business"

"More than 80% of AI implementation projects end in failure. This is because many people view AI as magic. Vague expectations about AI technology and the actual process of implementing AI in business are completely different. AI projects can only succeed when the core business is at the center."

This is what Gong Seong-bae, Megazone Cloud's CAIO (Chief AI Officer, photo), said. He explained, "Many cases focus only on the technology itself rather than trying to solve clear business problems. Executives often don't realistically understand the possibilities and limitations of AI and only expect short-term results," and added, "Lack of specialized personnel, unexpected costs, and data quality degradation are also factors that cause AI projects to fail."

A 'technology-centric approach' is an error many companies make. When companies become obsessed with specific technologies like LLMs (Large Language Models) or RAG (Retrieval-Augmented Generation), it's easy to overlook the most important question: "What business problems need to be solved and how?" According to CAIO Gong, "Even after completing PoC (Proof of Concept) well, many cases become uncertain at the stage of planning how to integrate AI into their own organization," and he emphasized, "AI implementation can only succeed by applying it to individual businesses to achieve results, using a strategy of achieving small successes and later expanding on a larger scale."

He said, "Megazone Cloud also initially attempted a technology-first approach and struggled to move beyond the PoC stage," and added, "After changing direction to a 'business-first' approach, we achieved results." This is why he emphasizes that "AI's organizational strategy, culture, and overall operational design are more important than the technology itself."

Megazone Cloud has recently begun full-scale AI business under the brand 'Megazone AIR (AI Ready)'. In the past, as an MSP (Managed Service Provider), it consulted on information system architecture that optimizes the advantages of cloud computing infrastructure and helped customers transition to the cloud. However, after launching the AIR brand in May, it now helps companies transform into 'AI-native enterprises' by redesigning strategy, operating systems, and customer touchpoints around AI. Megazone Cloud has been preparing to transform itself into an AI-native enterprise, and it shares the trial-and-error experiences and solutions gained from this process with its customers.

CAIO Gong said, "During customers' AX (AI Transformation) process, we hold workshops with field-related personnel to identify their pain points," and explained, "We want customers to experience fewer trial-and-error situations than what Megazone Cloud experienced in its AX journey."

Article Source: Money Today