How LG Innotek Uses AI to Select Parts and Speed Up Quotations

LG Innotek has put AI into an early, consequential step of product development: finding suitable parts and estimating what they should cost. Its company-wide system brings component specifications and pricing information together, with a reported reduction of more than 70% in the time needed to prepare new-product quotations.714

How the parts system works

After roughly two years of development, LG Innotek deployed what it calls an AI Component Proposal System across all business divisions. The Korea Herald refers to it as the Adaptive Component Optimization System. The system draws on about 2 million internal and external component records; LG Innotek says it standardized manufacturers’ differing part names, specifications and units to make them easier to search and compare.71432

Employees enter technical requirements, and the system recommends matching or similar components while helping identify suppliers. Reporting cites parts searches for new cameras and semiconductor substrates as examples. This lets staff weigh technical fit alongside expected price rather than treating selection and cost estimation as separate searches.2710

For pricing, the system produces a reference price using past purchases and price trends for comparable parts. That can provide an estimate even when LG Innotek has not previously bought a particular component. One report describes the reference price as having reliability above 96%, but the available account does not explain how that figure was measured; it should not be read as independently verified pricing accuracy.45

What the reported time savings mean

LG Innotek says the system can narrow the field to suitable, price-competitive components within about two hours and has reduced new-product quotation preparation time by more than 70%. These are company-reported results, not independent benchmarks. The distinction also matters: a two-hour shortlist is not necessarily a completed customer quotation.379

The practical aim is a faster, better-supported product proposal: employees can compare candidate parts and estimated costs earlier in the quoting process. LG Innotek says that should improve proposal quality and its competitiveness in winning orders.18

Recognition, next steps and limits

Reporting says the system received a customer satisfaction award at the April 2026 LG Awards. LG Innotek also plans to add agentic AI that can seek out and incorporate newer component information; that is a planned capability, not part of the documented rollout.36

The cited accounts establish how the parts-recommendation and pricing system works, but do not substantiate claims that it has reduced preliminary supplier quote requests or automatically found substitutes during supply disruptions. Nor do they provide enough evidence to attribute specific factory defect-analysis or camera-module production-setting time savings to this system. Those manufacturing claims should be assessed separately from the reported quotation gains.4714