Deutsche Telekom stated that artificial intelligence and automation are expected to generate approximately €1.1 billion in gross savings outside the U.S. by 2027, using 2023 as the baseline. By 2030, indirect cost savings are estimated to be around €2.5 billion.

This €1.1 billion does not account for the token costs associated with using AI itself. The company plans to reinvest part of the additional savings from 2027 back into Germany's digital infrastructure and fiber networks. CEO Tim Hoettges mentioned before an investor event on Monday that AI is fundamentally transforming the company, making networks smarter, services more personalized, and opening up new business opportunities.

Savings will occur in areas with repetitive tasks: network operations, customer service, software development, and management processes. The company cited examples where AI can detect traffic peaks in cellular networks earlier and assist customer service representatives to resolve issues on the spot. Additionally, they are developing a platform for businesses to automate recurring tasks. Voice assistants will be able to translate calls in real-time, answer questions, and summarize conversations, with plans to expand services and pricing options based on this.

Revenue targets are calculated separately. By 2026, AI-related revenue outside the U.S. is expected to be around €250 million, rising to about €800 million by 2030. The company views the development of sovereign AI in Europe as a major business opportunity, as businesses and public institutions want to use AI without relinquishing control of their data. Full-year guidance and mid-term targets remain unchanged.

The U.S. business is not included in these savings figures. Deutsche Telekom holds significant assets in the U.S. through T-Mobile, while the cost and revenue estimates pertain to its European operations. The event was held in Bonn for AI Investor Day, with the statement released in advance.

This is a cost guidance, not a layoff or contract announcement. Buyers are European companies and public institutions seeking sovereign computing power and automated processes, while the seller is Deutsche Telekom, which is transferring customer service, network, and management processes to models. Savings shift from manual repetitive operations to token expenditures and fiber reinvestment. The beneficiaries are the groups that can capture gross savings and reinvest part back into the network, while those under pressure are customer service and process roles covered by automation, as well as profit margins not yet offset by token costs.

Source: Public Information