SK Telecom CEO Defines the ‘AX J-Curve’: Why AI Transformation Gets Harder Before Productivity Takes Off

SK Telecom's CEO Jaeheon Chung introduced the "AX J-Curve" to explain why AI implementation can initially lead to decreased productivity. Speaking to students at Seoul National University, Chung argued that companies must redesign work processes to experience meaningful AI gains. This process often requires more time and resources before delivering significant productivity improvements.

The lecture, titled "Choices and Opportunities in the AI Era," opened a decade-long AI joint program between SK Telecom and Seoul National University. The "AX J-Curve" is based on SK Telecom's experience with AI transformation. Traditional J-curves depict economic conditions initially worsening before improving sharply. Chung applied this to corporate AI transformation, stating that organizations that endure the initial transition will eventually experience rapid productivity gains.

Three principles for crossing the productivity valley include seeing familiar work from a new perspective, confronting extreme challenges, and accepting temporary discomfort. For example, an SK Telecom developer previously spent 50 hours on system modifications but later reduced this to about one hour after automating the process with AI.

Chung emphasized that AI adoption changes the "density of time," potentially giving individuals the productive capacity of 240 or even 2,400 hours. He argued that AI requires organizations to rethink which tasks humans should perform and how work should be structured, rather than being seen as another incremental IT upgrade. Chung also highlighted the importance of sovereign AI capabilities, as relying too heavily on technology developed elsewhere can limit control over pricing, access, and operating conditions.

Ultimately, he suggested that AI will increase the value of human judgment, empathy, and deep expertise in one's domain.