Deutsche Telekom Bets on AI to Cut Costs and Grow Revenue

Deep News
Yesterday

CEO Tim Hoettges said artificial intelligence is fundamentally reshaping the company. Deutsche Telekom plans to integrate AI technology into its communications networks and European infrastructure.

The German telecommunications group said that, using 2023 as a baseline, it expects AI and automation operations to deliver approximately 1.1 billion euros (equivalent to 1.24 billion US dollars) in direct gross savings in markets outside the United States by 2027; by 2030, indirect cost savings could reach 2.5 billion euros.

Ahead of an AI investor event held on Monday, CEO Tim Hoettges said in a statement: "Artificial intelligence is fundamentally transforming Deutsche Telekom. It makes our networks more powerful and more intelligent, our services more personalized, and it spawns entirely new business models."

The company said it has introduced artificial intelligence in scenarios involving large amounts of repetitive work across network operations, customer service, software development and administrative processes.

At the same time, new products and services will drive revenue growth. Deutsche Telekom is developing platforms for enterprises to help them automate repetitive work; the company's AI assistant can perform real-time call translation, answer questions and summarize content, paving the way for more value-added services and new pricing plans.

The company expects AI-related revenue in its non-US business segment to be about 250 million euros in 2026, growing to around 800 million euros by 2030.

Deutsche Telekom also confirmed its full-year guidance and medium-term operating targets.

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