Kurly is accelerating a company-wide shift to artificial intelligence as it brings an AI solutions company into the fold. Kurly decided on a small share swap with 1Z Labs to strengthen its business competitiveness based on AI technology, it said in a filing on Sunday. The swap ratio is 1 to 1.8437990, and Kurly will newly issue 453,518 common shares. The exchange date is Aug. 4, after which 1Z Labs will be incorporated as Kurly’s wholly owned subsidiary.

Kurly is currently pushing AI transformation (AX) as a company-wide task. Key elements include establishing the use of AI across services, building an AI governance system and finding new AI-based businesses. If 1Z Labs joins as a 100 percent subsidiary, the current AX action plan is expected to move forward at a faster pace through swift decision-making and close cooperation.

The two companies are jointly developing creative AI, AI customer service called AICS and the internalisation of an advertising system. Creative AI supports repetitive tasks such as producing ad banners and product images, with AI assisting from planning through release. AICS is applied to "Kurly 1:1 inquiries" to handle customer queries as well as cancellations and returns, and AI is handling about 40 percent of inquiries received the same day.

Kurly appointed Kwak Keun-bong (곽근봉), CEO of 1Z Labs, as head of its AX Center. The AX Center is the control tower that oversees the introduction and use of AI technology within Kurly’s organisation. Kwak will serve concurrently as 1Z Labs CEO and head of Kurly’s AX Center, leading the advancement and internalisation of AI technology.

Kurly CEO Seul-a Kim (김슬아) said, "Through this acquisition of 1Z Labs, we plan to maximise AX synergies while quickly internalising independent AI technological capabilities." She added, "By combining commerce and AI technology, we will be reborn as a company that leads innovation in the e-commerce market."