According to Naver, Cue – the name of the new AI service – understands Korean culture, context, regulations and laws, giving it a significant advantage on home turf. At the announcement press conference, CEO Choi Soo Yeon affirmed that Naver is the company that understands the Korean mindset the best.
Ms. Choi said Cue will launch in September 2023, following the Clova X conversational AI model. Both are based on the HyperClova X large language model, which is capable of processing speech and text, combined with other services such as maps.
The announcement was made by Naver in the context that the company is facing challenges from OpenAI and other foreign technology companies such as Google and Meta.
In particular, OpenAI's ChatGPT has attracted great interest globally, including in South Korea, as many individuals and organizations use it.
Sung Nako, Director of HyperClova X, claimed that Cue produced better results than ChatGPT-3.5 in internal testing. He is confident that the model can compete effectively with its rivals. In addition, the company uses a localization strategy to target the domestic market first.
“We bet on Korea, so we developed a small, specialized model,” he said at a press conference.
Naver’s push into artificial intelligence comes as its share of the domestic internet search market is expected to fall from 78.9% in 2016 to 62.2% in 2022, according to research firm NHN Data. In contrast, Google’s market share here has increased from 7.8% to 31.8% over the same period.
(According to Nikkei)
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