Kakao has introduced the test version of its first artificial intelligence (AI) app, Kanana, amid evaluations from users indicating some disappointment. Although it has completed internal beta testing and made it public, there are concerns that the AI suffers from hallucination phenomena, a chronic issue, and that it is not integrated with KakaoTalk, which limits its utility.
Kakao notes that due to the messenger app's emphasis on privacy, applying AI analytical services to KakaoTalk is not easy. The company aims to develop Kanana as a new brand representing its AI business, but there is a sense of concern that combining it with KakaoTalk, which already has high market share and recognition, could dilute Kanana's image.
Kanana is an "AI mate" that assists users in one-on-one conversations and group chat rooms. According to Kakao, Kanana understands the context of group conversations and provides information. Unlike competitors' AI services that perform tasks through one-on-one conversations, Kanana is a member of the conversation. It can also summarize previous conversations for participants who join group chats late.
◇ "I can't reveal the source of information"… severe hallucination phenomenon
After using Kanana directly, it became clear that there are still many areas for improvement. When first connecting to Kanana, users are guided to create group chats with acquaintances based on interests such as hobbies, sports, and investments. One-on-one conversations are also possible. I called the AI mate "Kanana" and requested information about "ChosunBiz." Kanana replied, "I cannot find detailed information on ChosunBiz based on the information currently provided." When I asked, "Where does the information come from?" it dodged the question, saying, "It's a question I can't answer." When I asked a politically related question, it responded, "I cannot answer."
To choose a movie to watch over the weekend, I invited friends and created a group chat. When I asked Kanana to tell me about recently released movies, it provided a list with release dates, movie names, and synopses. However, it exhibited hallucinations by mentioning non-existent movies or films released in the past, leaving a disappointing impression. For questions related to restaurant recommendations or date course suggestions, it provided fairly satisfactory answers as it is linked with KakaoMap.
Within the industry, there is a sense of regret that the hallucination phenomena might have been lessened if Kakao had integrated Kanana with KakaoTalk. However, for Kakao, it cannot easily combine Kanana with KakaoTalk. This is because Kanana’s feature of analyzing conversations could lead to user discomfort. The lifeblood of a messenger app is "privacy protection," and if issues arise regarding privacy violations during the AI's analysis of participants' conversations, it could lead to distrust in KakaoTalk among users. The concern is that integrating Kanana into KakaoTalk for faster access to more information could result in losing customers. Currently, about 95% of the population in South Korea uses KakaoTalk.
◇ Kakao: "Kanana is a new business… a growth engine for the AI business"
Kakao plans to develop a separate brand representing its AI business, with the Kanana app at the forefront. It seems that a separate AI service will be applied to KakaoTalk. The Kanana app is set to undergo a testing process before its official release, although the timing is undecided.
Chung Shina, representing Kakao, noted during the first quarter earnings conference call on the 8th that the company is reviewing plans to incorporate AI services into KakaoTalk. Chung explained, "Starting with the Kanana app, Kakao plans to sequentially introduce products this year, including specific field service recommendations (using AI), generative search, and products co-developed with OpenAI, thereby laying the foundation for AI to become a growth engine for Kakao."
Meanwhile, the potential side effects of launching Kanana as a standalone app cannot be ruled out. There is a possibility of "cannibalization," where Kanana might draw users away from KakaoTalk. Cannibalization refers to the phenomenon where a new service encroaches on the market share of an existing service.
Kakao explained that while KakaoTalk aims for communication among users, Kanana focuses on interaction between users and AI mates, hence there is no concern that KakaoTalk will be encroached upon.