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SK Telecom signs strategic partnership deal with Scatter Lab chatbot start-up with $11M investment

SK Telecom

SK Telecom is investing KRW15 billion or about $11.2 million in Scatter Lab, an AI startup, as part of a strategic partnership deal. The companies will jointly create a chatbot or AI agent that will be integrated into the telecom’s AI service.

SK Telecom made an equity investment in the AI firm that is known for its Lee Lu-da chatbot service. The South Korean telecom giant confirmed the deal and its investment in Scatter Lab on Monday, April 24.

The mentioned Lee Lu-da chatbot was an instant success for Scatter Lab, but it was quickly withdrawn after getting embroiled in a scandal for data collection and offensive comments. The chatbot became a hit among young people due to its ability to converse like a real person on Facebook’s messenger app.

When it was released in December 2020, it immediately attracted 750,000 users. But just 20 days after its debut, the service was pulled out by Scatter Labs after criticisms poured in over Lee Lu-da’s discriminatory and offensive comments against disabled people and sexual minorities. It was added that some male users were able to manipulate it to engage in sexually-charged conversations as well.

In any case, as per Korea Joongang Daily, the aim of the business cooperation between SK Telecom and Scatter Lab is to develop an artificial intelligence service that can carry out empathetic conversations. It will be a conversational AI that will be a lot better than Lee Lu-da and will be added to SK Telecom’s AI service.

Currently, SKT is operating A. or A dot, an AI-powered digital secretary bot. It was launched last year, but it was not mentioned if this will be retained after the development of a new chatbot with Scatter Lab.

“We are pleased to work with Scatter Lab, which has a strong capability in AI chatbot services specializing in empathetic conversations,” SK Telecom’s A. unit’s head, Kim Yong Hoon, said in a statement. "SK Telecom will continue to contribute to fostering Korea's AI ecosystem and strengthening its global competitiveness through the K-AI Alliance."

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