SK Telecom (SKT) and Microsoft agreed to collaborate on AI, cloud computing and 5G, to drive adoption of IoT technologies by businesses.

By combining SKT’s Nugu AI platform and Microsoft’s Cortana digital assistant, they will develop AI-powered products and services including smart speakers and other offerings for enterprises, SKT said in a statement.

As part of the agreement, SKT, the largest mobile player in South Korea, will deploy Microsoft 365 for its employees, with plans to expand the software to other ICT companies in the SK Group.

The MoU, signed by SKT CEO Park Jung-ho (pictured, left) and Microsoft CEO Satya Nadella (pictured, right), comes three months after the companies announced a strategic partnership to launch Microsoft’s cloud computing service Azure with SKT’s big data programme Metatron.

SKT said it will work with Microsoft to upgrade the service which aims to promote the use of IoT technologies in smart factories.

Park said “collaboration with global leading companies like Microsoft is essential to gain leadership in the 5G market, where competition is already fierce. SK Telecom will work closely with Microsoft to create an unprecedented value by combining the strengths and capabilities of the two companies”.

Jason Zander, EVP of Azure at Microsoft, explalined the partnership will enable the company to “play a key role in shaping the future and accelerating the digital transformation of the telecommunications industry”.

“This will be a deep and multifaceted partnership that strengthens the power of cloud and AI to deliver innovative new services to customers.”