AI Even for Finding Parts... LG Innotek Narrows Down “Optimal Candidates” Within Two Hours

[Financial News] LG Innotek has introduced an artificial intelligence (AI)-powered system across all its business divisions to identify the optimal parts for new products. The system analyzes data on approximately 2 million internal and external parts to compare prices and performance and quickly narrow down candidates. The company expects the system to cut the time required to prepare new product quotations by more than 70%, strengthening its competitiveness in securing orders.
LG Innotek announced on the 20th that it had built an AI system to quickly identify the optimal parts for new products.
The newly built “AI Parts Recommendation System” uses AI to analyze extensive internal and external parts data, allowing users to compare specifications and prices at a glance. After more than two years of development, the company recently began fully deploying the system across all its business divisions.
LG Innotek’s camera modules, semiconductor substrates and automotive parts contain several hundred parts on average. Previously, preparing quotations for orders and developing products required considerable time to review information scattered across multiple internal systems and identify new parts. To address this issue, LG Innotek turned to AI for parts searches. The strategy is to reduce search times while selecting the optimal parts based on both price and performance, thereby improving the quality of product proposals and strengthening competitiveness in securing orders.
LG Innotek first consolidated data on approximately 2 million internal and external parts, including capacitors and inductors. It standardized the different part names, specifications and units used by manufacturers to build an extensive database that AI could utilize. The company then developed the “AI Parts Recommendation System” using this data. When a user enters the required specifications, the system searches the entire database and displays parts with similar conditions. Because it covers not only parts previously purchased but also external market data, the system greatly expands the scope of parts searches, which had previously been limited to employees’ experience and purchase history. 
A key strength of the system is its AI-based “reference price” calculation feature. AI analyzes the actual purchase history and price trends of parts with similar specifications and presents the current price level. The reliability of the reference prices was found to be more than 96%. The system can also predict price levels for new parts with no purchase history, not just for parts purchased previously. 
An LG Innotek official said, "This allows us to review a broader range of parts while narrowing down cost-competitive candidates within two hours," adding, "We then only need to check actual quotations from the shortlisted suppliers, enabling us to select the optimal parts efficiently within a short period." 
With the introduction of the “AI Parts Recommendation System,” LG Innotek has reduced the time required to prepare new product quotations by more than 70% compared with the past. The company expects to use the time saved to review customer requirements in greater detail, improve the quality of its proposals and strengthen its competitiveness in securing orders.
Another advantage is that the company can quickly secure alternative parts if a specific part is discontinued or supply disruptions occur, allowing it to respond flexibly to changes in parts supply.
In recognition of its innovative achievements, the system won the Customer Satisfaction Award at the “2026 LG Awards” last April. The “AI Parts Recommendation System” currently uses pre-collected and standardized internal and external parts data to search for parts and calculate prices. LG Innotek plans to further develop the system by applying Agentic AI, enabling it to independently search for and analyze the latest parts information and reflect it in the system. 
Kim Joon-sung, executive director and head of LG Innotek’s Procurement Center, said, "The ‘AI Parts Recommendation System’ is optimized for manufacturing companies that handle a wide range of parts and represents a meaningful innovation that completely changes the previous approach," adding, "We will continue to provide value beyond customer expectations through AX-based ways of working." 

[email protected] Lim Soo-bin Reporter