When Talking About the Future of AI, Let’s Also Look at the Reality Facing SW Companies
IT DAILY ·
✦ AI Summary
In the AI era, it was argued that SW companies need to shift from business-development- and delivery-centered work to product-centered competition.
Professor Kim Sook-kyung of KAIST said that even with public-market protections and systems to protect companies, not enough competitive firms have emerged, and proposed reflecting operating and improvement costs after building public-institution information systems and reforming public procurement structures.
However, some said such proposals sounded like demands to suspend business, and domestic SW companies are reportedly struggling with monetization and maintenance compensation amid free-provision demands and concerns that low prices will become locked in.
In the AI era, there is growing recognition that SW companies need to move away from the old model of relying on individual business development and deliveries and shift to a product-centered competitive model that accumulates specialized knowledge and operating experience. However, there is also the view that there are tasks that must be addressed first before such a change can be realized. This perspective emerged while listening to the presentations and discussion at the "2026 Korea Commercial Artificial Intelligence Software Association Forum" on the 2nd.
At the forum, Professor Kim Sook-kyung of KAIST delivered the keynote presentation, pointing out that despite public-sector market protections and systems designed to protect companies, enough competitive firms have not been produced. She then proposed that operating and improvement costs should be reflected after building information systems for public institutions. She also suggested the need to reform public procurement structures so that actual performance can lead to repeat purchases.
There were responses to this direction that agreed with the need for change. However, one person said the proposal sounded like a demand to suspend business. Questions were also raised about whether remarks intended to foster companies are being perceived by some as a call to stop business altogether.
People involved said domestic SW companies are struggling at the monetization stage because even after developing products, they face the reality that purchases do not follow, and they are also confronted with requests for free provision in the name of building up delivery records. The shortage of personnel to dedicate to development adds to the problem, and there are voices saying that a good product alone is not enough to sustain a business. Another person said there was even a case in which a company’s quote listed the solution price as KRW 0 and only presented labor costs for deployment.
When product prices are offered too low in this way, there is concern that they may later solidify as the benchmark price for future transactions, so the company in question chose not to disclose its sales price. However, this makes it difficult to calculate maintenance compensation. In other words, a choice meant to avoid locking in low prices can work against maintenance revenue.
In this reality, calls for SW companies to compete by accumulating technology and experience can feel overwhelming. Their immediate priority is securing operating expenses and employee salaries. While there is also talk that SW companies make a living through sales rather than technology, they need to secure the capacity to invest in products, but the energy that could be used for product investment is being spent just on keeping the business going now.
The article notes that the excellence of a transaction cannot be judged solely by the procuring agency’s lower initial purchase costs. If product companies lack the resources to invest in improvement and maintenance, it is difficult to expect better products and services later on.
It goes on to say that while AI is creating new opportunities for SW companies, turning those opportunities into growth requires changing long-standing practices. Product and maintenance compensation must be properly recognized, and without addressing old problems, new growth is hard to expect. It emphasizes that along with expectations for AI development, the reality facing SW companies that provide the foundation must also be examined.
Source: IT DAILY · Yang Seung-gap
Original: https://www.itdaily.kr/news/articleView.html?idxno=242258
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Source: IT DAILY
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