Samsung Electronics chases AI 'wow factor' to woo millennials

SEOUL -- For Samsung Electronics, the future for many households looks something like this: A robot zips around the kitchen as it prepares dinner, knowing just what to make based on a user's preferences all the while being aware of any health conditions that their diet needs catering to.

This may seem like a glimpse into a time rather far off from now, but the South Korean company envisions this being commonplace sooner rather than later. It plans to make its home electronics artificial intelligence-enabled, creating a service that connects its wide-ranging products, from smartphones and televisions to home appliances, Kim Hyun-suk, CEO and president of consumer electronics, said in an interview with Nikkei.

Some "25% to 30% of people in the world use Samsung products on a daily basis, and this gives us a huge opportunity," Kim said. Connecting products will allow the company to offer "special experiences [to customers] in a completely different field than Apple," he said.

The electronics giant raked in 48.17 trillion won ($41.3 billion) in sales last year with the top global market share in TVs.

With advanced connectivity, for instance, a Samsung TV may show a fitness program and built-in sensors will track the user's movements, working with a wearable device to monitor his or her vital signs. Then an AI-powered system will use big data to recommend an exercise program that is most suitable.

Not sure what to make? Samsung is working on service that suggests healthy meals based on what AI detects in the refrigerator. (Photo courtesy of Samsung Electronics)

The service will even goes so far as to offer up the recipe of a healthy meal, based on what AI detects in the refrigerator.

At the 2021 CES show in the U.S., one of the world's leading tech shows, Samsung laid out a vision for what a robot-assisted home might look like, unveiling a robot that performs household chores such as loading the dishwasher and showing off a washer-dryer unit that automatically sets how long to wash clothes. The company foresees that with advancement in image recognition technologies and control chips, robots will soon be part of a household.

"Personalization and automation will be attained at the same time thanks to AI," he said, indicating that appliances will perform tasks one step ahead of users based on their preferences. Kim oversees AI development and research.

"Today, rather than people channel surfing, TVs select programs that users want. This type of technology advancement will spread to other electronics," Kim added.

This year Samsung established an internal body for promoting multi-device experiences, where the heads of smartphones, TVs and white goods work together to promote connectedness among the products, seeking to develop new services quickly through strong collaboration.

And because of advancements being made by Chinese rivals, Samsung is under pressure to get to the future as soon as possible.

Kim Hyun-suk, CEO and president of consumer electronics, believes the key to attracting younger consumers is through new features and experiences.  (Photo by Kotaro Hosokawa)

"Chinese companies also fully excel in hardware, and we cannot beat them with specs alone," Kim acknowledged. But Samsung is tapping its strength of offering a comprehensive range of products, with Kim saying the company "alone can provide new experiences by connecting a wide range of products."

Samsung is focusing on experience because of a generational difference between older and younger customers. "Compared to consumers 40 and over, the 'Gen MZ' people are less loyal to brands," he said, using the South Korean term that refers to people in their 20s and 30s. "They are particularly keen on basing their decisions on whether they can gain a new experience."

"Younger people also routinely share content on platforms such as Netflix and Instagram, and differences among people in different countries and regions are narrowing and their consumption preferences are growing similar," Kim said.

This is why developing products and services mainly targeted at these young people is essential for the next five to 10 years, he emphasized.

As with other manufacturers, Samsung's supply chain has been hit hard by challenges such as the pandemic and the global chip shortage. The company's major factories for smartphones, electronics and displays in Vietnam remain under COVID-19 restrictions.

Kim indicated that Samsung is committed to the Southeast Asian country.

"Vietnam is a 'mother factory,' we continue to grow there and we have no plans to scale back production."