Deutsche Telekom Targets €2.5B in Cost Savings with AI Expansion

Deutsche Telekom plans to cut indirect annual costs by roughly €2.5 billion by 2030 through expanded use of artificial intelligence and automation. This represents an increase from previously targeted gross savings of €1.1 billion for 2027. The company also forecasts AI-related revenue outside of the United States will grow to €800 million by 2030, compared to approximately €250 million this year.

The company is deploying AI in network operations, customer service, software development, and administrative processes. A chatbot has already handled around 2.6 million customer service calls in the first half of the year. In the US, AI agents now handle 40 percent of customer contacts, contributing to a 55 percent reduction in customer service calls.

Deutsche Telekom reaffirmed its existing financial forecasts and medium-term goals alongside the AI expansion announcement. The strategy aims to enhance network performance, personalize services, and develop new business models, including AI-powered customer service tools and infrastructure for European industry. The company’s stock showed minimal pre-market movement following the announcement.