Deutsche Telekom sees cost savings, revenue boost from AI rollout

German telecommunications giant Deutsche Telekom (DTEGY) said it expects to save billions of dollars by 2030 and generate additional revenue as it rolls out artificial intelligence across the entire company.

The partially state-owned company expects AI and automation to generate gross savings of about €1.1B ($1.2B) outside the U.S. for 2027 compared to 2023, with around €2.5B (~$2.8B) in indirect cost savings by 2030.

Deutsche Telekom (DTEGY), which owns a majority stake in T-Mobile US (TMUS), expects AI-related savings of €100M-€150M euros between 2023 and 2027. Additional savings in 2027 will be partially reinvested in expanding Germany's fiber-optic network.

The company expects to generate around €250M in AI-related revenue from businesses outside the U.S. by 2026, aiming to increase this number to about €800M by 2030.

"AI is fundamentally transforming Deutsche Telekom," its CEO Tim Höttges said. "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."

Deutsche Telekom (DTEGY) uses AI for repetitive work in network operations, customer service, software development and administrative processes.

Its AI chatbot Frag Magenta handled about 2.6M customer service calls in H1 2026. The number of customer service calls in the U.S. has dropped 55%, with AI agents now handling 40% of customer contacts.

RAN Guardian Agent, an AI system developed by Deutsche Telekom (DTEGY) and Google Cloud, detects impending network strains and helps in implementing countermeasures. This has slashed the response time for such events from several hours to about a minute.

Deutsche Telekom (DTEGY), which sees Europe's need for sovereign AI as a major business opportunity, is integrating its networks and European infrastructure with technologies from partners.

The company is also developing a platform for small and medium-sized businesses that will help them automate recurring tasks.