Deutsche Telekom boosts growth, efficiency and quality through the use of AI

  • New Revenue: Telekom aims to increase its AI-related revenue from business with companies outside the U.S. to approximately 800 million euros by 2030. New AI services are also expected to contribute to growth in the consumer business.
  • Lower costs: Savings of approximately 2.5 billion euros in indirect costs are expected by 2030 as a result of AI and automation, compared to 2023.
  • Better quality: AI detects peak traffic on the cellular network earlier, supports customer service representatives, and thus helps resolve issues immediately.
  • Deutsche Telekom confirms its guidance and medium-term targets.

How does artificial intelligence translate into a measurable contribution to the business? Deutsche Telekom will demonstrate this at its AI Investor Day in Bonn. Members of the Executive Board and subject matter experts will present applications from across the entire Group: from products for residential customers to industrial AI and applications in network planning and management. The focus is on generating additional revenue, reducing costs, and delivering even higher quality to customers. Deutsche Telekom also confirms its forecast and medium-term goals.

“AI is fundamentally transforming Deutsche Telekom. It makes our networks even better and smarter, our service more personalized, and opens up new business models: from AI assistants during phone calls to a sovereign infrastructure for European industry,” said Tim Höttges, CEO of Deutsche Telekom. “What matters most is that technology delivers measurable value, for our customers and for our company.”

Sovereign AI is becoming a growth business, new services for retail customers

Telekom sees Europe’s need for sovereign AI as a major business opportunity. Companies and public institutions want to use AI for sensitive tasks while retaining control over data and operations. Telekom is achieving this by integrating its networks and European infrastructure with technologies from partners. A key component of this effort is the successful Industrial AI Cloud in Munich, where companies can run industrial simulations and AI-powered processes.

Telekom is also developing a platform for small and medium-sized businesses that will allow companies to automate recurring tasks, such as those in customer service or logistics. By 2026, the company expects to generate approximately 250 million euros in AI-related revenue from businesses outside the U.S. It aims to increase this figure to approximately 800 million euros by 2030.

Even phone calls are becoming AI-powered services. The Magenta AI Assistant can translate mobile phone conversations in real time, answer questions, and summarize content: all without customers needing an additional app or a new device. Telekom sees this as an opportunity for additional services and new rate plans. In marketing, the company is already using AI, for example, to deliver more relevant offers through its “Magenta Moments” rewards program and to target customers more effectively.

AI and automation reduce costs and create more room for investment

Telekom uses AI in areas where large volumes of repetitive work occur in network operations, customer service, software development and administrative processes. The chatbot “Frag Magenta” handled approximately 2.6 million customer service calls in the first half of 2026 alone. In the U.S., the number of customer service calls has dropped by 55 percent; AI agents there now handle 40 percent of customer contacts. AI also supports development teams in creating software and replacing older IT systems.

For 2027, Telekom expects AI and automation to generate gross savings of approximately 1.1 billion euros outside the U.S. compared to 2023 . By 2030, it aims to achieve savings of approximately 2.5 billion euros in indirect costs, also compared to 2023. Additional savings in 2027 are to be partially reinvested in accelerating the digital transformation and in the expansion of the fiber-optic network in Germany. Telekom expects savings from AI and automation totaling 100-150 million euros between 2023 and 2027. These savings will enable a higher deployment rate for fiber connections.

Detect network issues earlier, resolve issues faster: AI improves quality

In the mobile network, the benefits of AI are already evident during day-to-day operations. The “RAN Guardian Agent” detects impending network strains, such as those caused by large-scale events, and assists network management in implementing countermeasures. The response time for such events has dropped from several hours to about one minute.

In customer service, AI helps resolve issues more quickly and accurately. It provides employees with relevant information during a call and handles the documentation. Even when setting up a new connection, AI is designed to identify problems before they turn into complaints. Initial use cases show a 30 percent decrease in complaints. To ensure AI has a tangible impact on day-to-day work, Telekom is providing its employees with tools such as AskT, ChatGPT Enterprise, and Microsoft Copilot as part of the “AI for All” initiative. More than 100,000 employees have already been trained in using AI. Telekom aims to redesign its workflows with AI in the following way: Employees set goals, review results, and retain responsibility for decisions. “We’re just getting started. We want to roll out across the entire company what’s working today in individual applications. This will enable us to grow faster, work more efficiently, and set new standards for quality. At the same time, we want to demonstrate that Europe can successfully develop and operate sovereign AI,” said Tim Höttges during the event.

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