Telekom boss Höttges relies on artificial intelligence to reduce costs
The DAX group plans to use AI initiatives to reduce indirect costs by 2.5 billion euros by 2030 and generate additional sales.
Quick Look
- Telekom CEO Timotheus Höttges announced at the investor day in Bonn that he would use AI to increase efficiency.
- By 2030, indirect costs are expected to fall by 2.5 billion euros, while at the same time new sales potential of one billion euros will be created.
AI-generated summary
Why It Matters
Telekom presented concrete financial goals for its AI strategy for the first time at its investor day in Bonn.
Dusseldorf. Telekom CEO Timotheus Höttges wants to make the use of artificial intelligence (AI) an important business for the DAX group. At the group's investor day in Bonn on Monday, the CEO presented for the first time comprehensive figures on how his company's AI initiative should be reflected in the balance sheet. “I am an AI optimist,” said Höttges.
Next year, costs are expected to fall by 1.1 billion euros compared to 2023. “That’s 300 million more than we originally announced,” said Höttges. By 2030, AI together with automation is expected to reduce indirect costs outside the USA by around 2.5 billion euros. At the same time, Telekom sees additional sales potential of around one billion euros, Höttges announced to invited investors in Bonn.
“AI offers us great opportunities,” said Höttges. Unlike large technology companies from the USA, Telekom already has experience in controlling large infrastructure. He was alluding to the billions of dollars that US technology companies are investing in the infrastructure for AI applications. According to Bloomberg calculations, Amazon, Microsoft, Alphabet and Meta alone are expected to invest around $772 billion this year.
Open Questions
- How exactly will the AI implementation be implemented operationally?
- What specific AI applications are planned?
