German telecommunications giant Deutsche Telekom plans to reduce indirect costs by €2.5 billion by 2030 compared with 2023 levels through the use of artificial intelligence and automation.
The company announced the plan during its AI-focused Investor Day held today in Bonn.
The first target is to achieve €1.1 billion in gross savings by 2027 across markets outside the United States. Part of that money will be reinvested into fiber network expansion and digital infrastructure in Germany.
Chatbot handled 2.6 million calls
Deutsche Telekom is already using artificial intelligence in customer support and network management.
Its chatbot “Frag Magenta” handled 2.6 million customer calls during the first half of this year.
At its US subsidiary T-Mobile US, the number of calls to customer support has fallen by 55%, while artificial intelligence now handles 40% of all customer interactions.
AI is also being used across the network to detect traffic peaks earlier.
A system called RAN Guardian Agent reduced reaction time to network issues from several hours to approximately one minute.
The company also says that the use of AI during the onboarding of new customers has reduced the number of complaints by 30%.
More than 100,000 employees have undergone training to work with artificial intelligence tools, including the company's internal AskT, ChatGPT Enterprise, and Microsoft Copilot.
AI revenue could reach €800 million
In addition to cutting costs, Deutsche Telekom also wants to generate more revenue from artificial intelligence.
Revenue from AI services for business customers outside the United States is expected to reach around €250 million this year and increase to approximately €800 million by 2030.
The company already operates an Industrial AI Cloud in Munich, designed for industrial simulations and AI processes, while Deutsche Telekom sees the development of sovereign European artificial intelligence as a major business opportunity.
“Artificial intelligence is fundamentally transforming Deutsche Telekom,” said company CEO Tim Höttges.
Deutsche Telekom is the largest telecommunications company in Europe.
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