Source : the age
Australia’s largest telco Telstra will splash $700 million on rolling out artificial intelligence (AI) capabilities across the company, through a new joint venture with consultancy giant Accenture.
Telstra’s manoeuvre comes after investment giant Macquarie also raised its bets on AI, announcing that the funds it manages will invest up to $US5 billion ($8 billion) in data centres, through a partnership with US-based data centre provider Applied Digital.
Telstra chief executive Vicki Brady says the company will invest $100 million per year over seven years.Credit: AAP
Telstra chief executive Vicki Brady said on Wednesday the company would invest $100 million per year over seven years, which will see specialists from the telco and Accenture team up to improve business processes through AI. The telco will consolidate its 18 data and AI providers down to just two, and will build specialised AI tools for its teams to “work smarter and faster”.
The spending represents one of the largest investments in AI by an Australian company to date. It could lead to further job losses for Telstra, however, which last year announced plans to cut up to 2800 workers, about 10 per cent of its workforce.
The joint venture will be subject to consultation with employees and unions, and the Communications Workers Union was contacted for comment.
“We’ve made strong progress on our AI goals and already have hundreds of value-driving AI use-cases across the business,” Brady said.
“But our data and AI ambition goes well beyond introducing AI tools … From building self-healing, resilient networks to reinventing experiences for our customers and the way we work, AI will help power an exciting, connected future.”
Telstra announced in June it was the first Australian company and one of six companies globally to join the United Nations Educational, Scientific and Cultural Organisation (UNESCO) business council focused on ethical AI, which will work to develop an ethical impact assessment tool and joint initiatives to ensure the technology serves the public good.
Accenture will own 60 per cent of the joint venture and its CEO Julie Sweet said the program would drive innovation and value for Telstra’s customers, employees and shareholders.
Macquarie’s announcement comes amid a boom in investor interest in AI – last year’s biggest float on the ASX was the listing of DigiCo, a data centre play.
Accenture will own 60 per cent of the joint venture and its CEO Julie Sweet said the program would drive innovation and value for Telstra’s customers, employees and shareholders.Credit: Bloomberg
The 2025 Australian Tech Leaders survey has also identified AI as by far the leading trend in the coming year. The research, conducted by the Tech Council of Australia and Datacom, found that tech executives believe AI will be critical to turning around Australia’s declining productivity.
“It is a significant marker of where we are in our AI journey that Australian businesses expect that in 2025 the greatest opportunities will come from using technologies – like AI and automation – to drive operational efficiencies,” Datacom Australia managing director Laura Malcolm said.
Damian Kassabgi is chief executive of the Tech Council.Credit: Danielle Smith
“The responsible deployment of generative AI tools and solutions has the ability to enable productivity gains and create space for our teams to focus on the more fulfilling aspects of their work.”
Tech Council chief executive Damian Kassabgi said that AI had the potential to create 200,000 jobs and $115 billion in economic value by 2030.
“While 2024 was a big growth year for AI, there is huge potential for businesses to further embrace AI to work smarter and boost productivity,” he said.
“AI is transforming how businesses are run and these gains aren’t limited to the tech industry; increasing AI and tech adoption will deliver benefits across the economy.”
