LG Innotek said Sunday it had deployed an artificial intelligence system that helps engineers identify suitable components, suppliers and estimate prices, cutting the time needed to prepare quotations for new products by more than 70 percent.
The company, whose camera modules, semiconductor substrates and automotive components can each contain hundreds of inputs, developed the platform over about two years and recently rolled it out across all business divisions.
The Adaptive Component Optimization System draws on a database of about 2 million components compiled from internal and external sources. LG Innotek said it standardized differing product names, specifications and units across manufacturers before integrating the data into the platform.
When users enter technical requirements, the system recommends similar components from LG Innotek’s purchasing records and external market data. It also generates a reference price by analyzing past purchases and price trends for comparable parts.
LG Innotek said the reference-price estimates have achieved accuracy of more than 96 percent, including for components the company has not previously purchased. The system can produce a shortlist of competitively priced candidates within two hours, reducing the need to seek preliminary quotes from numerous suppliers.
The platform could also help the company respond more quickly to supply disruptions or discontinued components by identifying substitutes, LG Innotek said.
The system received a customer satisfaction prize at the 2026 LG Awards in April. LG Innotek plans to add agentic AI capabilities that can independently search for, analyze and incorporate the latest component information.
LG Innotek has been expanding its use of AI across manufacturing and procurement. The company said AI-based incoming-material inspections have cut the time required to identify defect causes by as much as 90 percent, while an AI process-optimization system reduced the time needed to determine camera-module production settings to less than six hours from 72 hours.
“The AI component recommendation system is a meaningful innovation that has transformed how manufacturers manage a wide range of parts,” said Kim Jun-sung, head of LG Innotek’s procurement center. “We will continue using AI to reshape how we work and deliver value beyond our customers’ expectations.”
herim@heraldcorp.com
