Deutsche Telekom Bets on AI to Cut Costs, Boost Revenue

Deutsche Telekom DTE 0.11%increase; green up pointing triangle expects to save billions of dollars through the increased use of artificial intelligence, while integrating the technology into its networks and European infrastructure will create new services for customers and increase revenue.

The German telecommunications group said it expects AI and automation to generate gross savings outside the U.S. of around 1.1 billion euros ($1.24 billion) by 2027 from a 2023 base, with around 2.5 billion euros of indirect cost savings by 2030.

“AI is fundamentally transforming Deutsche Telekom,” Chief Executive Tim Hoettges said in a statement ahead of an AI investor event on Monday. “It makes our networks even better and smarter, our service more personalized, and opens up new business models.”

The company said it uses AI where large volumes of repetitive work occur in network operations, customer service, software development and administrative processes.

At the same time, new products and services will help increase revenue. Deutsche Telekom is developing a platform that allows companies to automate recurring tasks, while its AI assistant that can translate phone conversations in real time, answer questions, and summarize content will pave the way for additional services and new rate plans.

In 2026, it expects to generate around 250 million euros in AI-related revenue from businesses outside the U.S., rising to around 800 million euros by 2030.

The company also confirmed its full-year guidance and medium-term targets.