LG Innotek develops AI-powered component recommendation system
Summary
LG Innotek has developed an AI-powered system that recommends components for new products after two years of development. The system analyzes more than 2 million components, compares specifications and prices, and uses purchase records and market trends to suggest a current price range. LG Innotek said the tool cuts price-setting time to about two hours and reduces the time needed for new-product pricing by 70 percent.
Key Facts
- LG Innotek said the system searches its database of more than 2 million components when users enter required specifications.
- The system uses actual purchase records and price trends of similar components to suggest a reference price range.
- LG Innotek said the reference prices showed an accuracy rate of more than 96 percent.
- The company said the new system reduced the time required to calculate prices for new products by 70 percent.
- LG Innotek said employees can use the saved time to review customer requirements in greater detail and improve proposal quality.
LG Innotek headquarters in western Seoul / Courtesy of LG Innotek
LG Innotek has developed an artificial intelligence (AI)-powered system that recommends components suitable for use in new products, the company said Sunday.
Completed recently after two years of development, the system analyzes vast amounts of internal and external component data using AI and allows users to compare specifications and prices at a glance.
LG Innotek’s key products include camera modules, semiconductor substrates and automotive components, each of which can contain hundreds of individual parts. By using AI to speed up component selection while considering both price and performance, the company expects to strengthen its competitiveness.
When users enter the specifications they need, the system searches through the data of more than 2 million components in its database and suggests parts with similar specifications. By providing information on components previously purchased by LG Innotek and from the external market, the system significantly broadens the search domain.
A distinctive feature of the system is its reference price function. The AI analyzes actual purchase records and price trends of components with similar specifications to suggest a current price range. The company said the reference prices showed an accuracy rate of more than 96 percent.
The prices of industrial components vary depending on purchase volume, contract terms and timing. Previously, employees had to check quotations from numerous suppliers and research market prices to find competitively priced components, consuming significant time and manpower, but the new system allows prices to be determined within about two hours.
LG Innotek said the system has reduced the time required to calculate prices for new products by 70 percent. The company expects employees to use the time saved to review customer requirements in greater detail and improve the quality of proposals.
“The AI component recommendation system is an optimized program for manufacturers and a meaningful innovation that fundamentally changes the conventional way of working,” an LG Innotek official said. “We will continue to deliver value beyond customer expectations through AI transformation.”
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