Samsung has announced it will officially adopt external generative AI services like ChatGPT and Gemini across its entire global operation.
This is a significant pivot. In 2023, Samsung famously banned these tools after a data leak, prioritizing security above all else. Now, the company is recalibrating its strategy, shifting from a security-first to a productivity-first approach, believing the potential gains outweigh the managed risks.
So, why the change now? Three key factors made this move possible. First, there's a strong internal push for efficiency. After facing profit warnings in 2025 and seeing the limitations of its internal AI, 'Samsung Gauss,' the need for powerful, cutting-edge tools became urgent. Second, the regulatory environment has matured. The passage of Korea's AI Basic Act in early 2026 provided a clear legal framework for using AI responsibly. Third, Samsung's own technology is catching up. After passing Nvidia's qualification for its advanced HBM3E AI memory, the company can now build a stronger 'AI full-stack' narrative, using AI to improve its own operations while also selling the hardware that powers it.
This transformation, which Samsung calls 'AX' (AI Transformation), is being driven from the very top. The company is launching a bootcamp for its affiliate CEOs and rolling out group-wide AI training. This signals that AX is not just a technology update but a fundamental change in how the company works, thinks, and innovates.
The potential financial impact is notable. A 1-3% reduction in operating expenses, which external studies suggest is achievable, could boost Samsung Electronics' operating margin significantly. While these are just estimates and execution is key, it shows how serious Samsung is about turning AI into a tangible competitive advantage.
- Generative AI: Artificial intelligence that can create new content, like text, images, or code, based on the data it was trained on.
- Operating Expense: The day-to-day costs a company incurs to run its business, such as salaries, marketing, and R&D.
- HBM3E: A type of high-performance memory chip essential for training and running powerful AI models.