LG CNS (064400.KS) said on the 14th that it has signed a business agreement with KDDI, one of Japan's leading telecommunications companies, to build a cooperation framework for artificial intelligence transformation and digital transformation projects across the Asia-Pacific region. KDDI is one of Japan's three largest full-service telecom operators, offering everything from business-to-consumer services such as mobile and internet access to business-to-business IT services including AI, cloud computing and telecom networks. The global carrier is expanding its B2B operations across 19 locations in 15 countries in the Asia-Pacific region alone.
The partnership centers on combining LG CNS's AI and digital transformation capabilities with KDDI's telecom infrastructure and global network to jointly identify new business opportunities in AI, smart cities, telecommunications and systems integration and management services.
For their AI business, the two companies will develop agentic AI services tailored to local companies for KDDI's Asia-Pacific operations, based on LG CNS's agentic AI platform Agentic Works. They are also reviewing cooperation in work automation services using physical AI. Through Physical Works, LG CNS's robot transformation platform, the companies will provide integrated robot management services to manufacturing, logistics and distribution clients that deploy robots at industrial sites.
The partners are also seeking synergies in smart city projects in Southeast Asia. They plan to build a business model that integrates LG CNS's smart city solutions — including its integrated urban control system and intelligent transport system — and its experience executing global smart city projects with KDDI's telecom infrastructure technology and business capabilities, aiming to gain an early lead in the fast-growing local market.
The two companies also plan to review cooperation and expand joint projects in telecommunications and systems integration and management, KDDI's core businesses. To that end, they have formed a working group and designated Vietnam, Thailand, the Philippines, Indonesia and China as priority target markets.
Kentaro Matsuura, deputy head of KDDI's Business Growth Division, said the cooperation between KDDI and LG CNS is aimed at building a new industrial foundation where AI, telecommunications and data converge. He added that the company will seek partnerships with a range of players in the Asia-Pacific region to build a digital ecosystem that supports corporate and social infrastructure. Park Sang-kyun, executive vice president and head of LG CNS's telecom, distribution and services business division, said the company will deliver tangible results in its global AI transformation business together with KDDI.