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Deutsche Telekom expects €2.5 billion in savings from AI and automation by 2030
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Deutsche Telekom expects €2.5 billion in savings from AI and automation by 2030

Oct 5, 2026

Deutsche Telekom expects to save €2.5 billion in indirect costs by 2030 compared to 2023 by expanding its use of AI and automation. The German telecom giant plans to reinvest these savings into Germany's digital infrastructure and fibre-optic network. Additionally, the company aims to grow its AI-related revenue from businesses outside the United States to €800 million by 2030, leveraging tools like its 'Frag Magenta' chatbot and Munich-based Industrial AI Cloud.

Projected savings from AI

  • ▪Deutsche Telekom estimates that AI and automation will generate gross savings of around €1.1 billion outside the United States in 2027 compared to 2023.
  • ▪Deutsche Telekom expects to save approximately €2.5 billion ($2.8 billion) in indirect costs by 2030 compared to 2023 levels by expanding its use of AI and automation.

Deployment of AI in operations

  • ▪Deutsche Telekom uses AI to detect peak traffic on its cellular network earlier and to support customer service representatives in resolving issues immediately.
  • ▪Deutsche Telekom's 'Frag Magenta' chatbot handled approximately 2.6 million customer-service interactions in the first half of 2026.
  • ▪In the United States, Deutsche Telekom's customer-service calls fell by 55%, and AI agents now handle approximately 40% of customer contacts.
  • ▪Deutsche Telekom is deploying AI across its network operations, customer service, software development, and administrative work to automate repetitive tasks.

Reinvestment of savings into fibre

  • ▪Deutsche Telekom expects AI and automation to deliver €100 million to €150 million in savings between 2023 and 2027 to help accelerate its fibre connections.
  • ▪Deutsche Telekom plans to reinvest a portion of its 2027 AI and automation savings into expanding Germany's digital infrastructure and fibre-optic network.

Projections for AI business revenue

  • ▪Deutsche Telekom aims to increase its AI-related revenue from businesses outside the United States to approximately €800 million by 2030, up from an expected €250 million in 2026.
  • ▪Deutsche Telekom is developing automation tools for small and medium-sized businesses in areas such as customer service and logistics to create new AI revenue streams.

Sovereign AI and cloud offerings

  • ▪Deutsche Telekom sees growing demand for AI services, such as its Industrial AI Cloud, that allow companies and public institutions to keep sensitive data under their control.
  • ▪Deutsche Telekom identifies a major business opportunity in Europe's goal to develop sovereign AI.
  • ▪Deutsche Telekom opened an AI Cloud centre in Munich, Germany, on February 4, 2026, which allows businesses to run industrial simulations and AI-based processes.

Debatable claims

  • ▪AI-driven corporate cost-cutting does more economic harm than good
  • ▪Sovereign AI is necessary to protect European data privacy
  • ▪AI automation in customer service degrades the quality of consumer support

4 sources

Channelnewsasia
Deutsche Telekom sees €2.5 billion in savings from AI, automation by 2030
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Reuters
Deutsche Telekom sees €2.5 billion in savings from AI, automation by 2030 | Reuters
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Digitimes
Deutsche Telekom targets US$2.8 billion in savings as AI business grows
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Investing
Deutsche Telekom sees AI driving €2.5 bln cost savings by 2030 By Investing.com
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