Korea's AI Adoption in Manufacturing and Real Estate Faces Hurdles

South Korean experts warn that adopting physical AI in manufacturing without sufficient data, low‑latency communication infrastructure, and clear investment justification can reduce productivity and create financial risk. A recent regional AX pilot found that ERP and MES data cover only about 1.6% of the information needed for physical AI, while process data from smart‑factory projects account for roughly 19.4%. Officials recommend a balanced mix of general AI and physical AI (about 80:20) and stress that firms should first secure high‑precision sensor data before large‑scale rollout.

In the real‑estate sector, a report shows that while 90% of U.S. property professionals use AI tools, only 35% report real productivity gains. Korean proptech firms such as AlSquare are redesigning workflows to integrate AI across customer‑relationship, transaction, and data‑analysis systems, moving beyond simple task automation. Analysts note that AI‑driven capital is shifting across borders, with Taiwanese investment flowing into Japanese property markets, illustrating how AI‑related asset growth can influence international real‑estate dynamics. Both manufacturing and real‑estate companies in Korea face similar challenges: the need for comprehensive data, infrastructure upgrades, and strategic redesign of processes to realize AI’s promised benefits.