Lotte Group chief urges AI transformation to get ahead

Lotte Group Chairman Shin Dong-bin

Lotte Group Chairman Shin Dong-bin has defined the present era as one of “extreme uncertainty” and urged the identification of opportunities out of crises. He particularly emphasized the widespread implementation of artificial intelligence (AI) across all facets of the business and called for a group-wide AI transformation.

In a New Year’s message posted on the group’s internal website on Tuesday, Shin highlighted, “The global economy has entered an era of extreme uncertainty,” citing demographic shifts and climate concerns as catalysts reshaping consumer paradigms and inducing rapid market changes. He underscored how the group navigates the global complex crisis is pivotal, saying that the future growth would be influenced by the response to these challenges.

Shin outlined key tasks for Lotte Group in 2024, including “enhancing core competencies,” “AI transformation,” and “cultivating an organization culture that tolerates failure.” He specifically urged a focus on “selection and concentration” within the core competencies for future business endeavors, emphasizing the need for bold restructuring to deliver differentiated value to customers, highlighting the potential to secure a position as a global leader by consistently elevating the technological prowess of high-value businesses for the future.

Shin also urged the integration of AI technology across all business processes, advocating for stronger investment in various sectors, including generative AI. He emphasized that preparing for AI transformation could position Lotte as a groundbreaking force in the industry and expressed hopes for establishing Lotte’s distinct business model by applying safe and effective AI technology.

He also requested the creation of an organizational culture that embraces failure, stressing the importance of building a culture that perceives failure as a part of the journey toward success and fostering an environment where ideas are freely exchanged and quickly transformed into strategies.