KAIST President Lee Kwang-hyung and NYU President Linda G. Mills signed a memorandum of understanding in Seoul to initiate the groundbreaking program.
The agreement follows years of cooperation between the two institutions in AI research and student exchange programs.
Both institutions aim to launch the program within the next two to three years, initially enrolling several dozen students.
The joint degree will differ from dual degree programs by awarding a single degree recognized by both universities.
"Through long-term cooperation with NYU, we will lead the way in nurturing world-class talent capable of innovatively applying and developing artificial intelligence across various fields," said Lee, president of Korea's top science and technology university, at the signing ceremony.
Mills emphasized AI's growing role in addressing global problems such as climate change, healthcare and educational disparities, and highlighted that the global talent jointly cultivated by both institutions will make innovative contributions to solving these challenges.
A steering committee comprising an equal number of faculty from both schools will be established this year to design the program's curriculum, budget, structure, logistics and legal matters related to accreditation.
Lee said the joint program plans to admit students from diverse academic backgrounds, including the humanities.
The curriculum will cover not only pure AI but also its applications in healthcare, biotechnology, electronics and mechanical engineering, he added.
The collaboration builds on existing partnerships between KAIST and NYU. They signed a cooperation agreement to establish a joint campus in June 2022 and launched student exchange programs and joint research initiatives in 15 AI-related fields last year.
