Telstra Calls for Thorough Examination of AI’s Cost-Effectiveness Ratio
We independently review everything we recommend. When you buy through our links, we may earn a commission which is paid directly to our Australia-based writers, editors, and support staff. Thank you for your support!
Quick Overview
- Telstra is vigilantly evaluating its AI investments to confirm that benefits surpass costs.
- The company has recognized 380 AI use cases throughout its operations.
- Focus areas include reducing expenses related to cloud services and software.
- AI has enhanced software development efficiency by 20% through GitHub Copilot.
- Telstra’s Connected Future 30 plan encompasses significant AI integration.
- A collaboration with Accenture seeks to simplify system complexities.
- Telstra reported robust financial results in the first half of 2026.
AI as a Central Strategy
Telstra has embedded AI as a critical component of its strategy, focusing on boosting cost-efficiency and productivity. The technology is widely utilized with 380 identified use cases, impacting areas such as testing, quality assurance, and customer transition processes.
Cost Monitoring
Chief Financial Officer Michael Ackland emphasized the necessity of preventing operating costs from diminishing expected returns. Telstra prioritizes the optimization of software licenses, cloud costs, and payments to AI providers.
Implementation and Advantages of AI
AI has led to a 20% rise in software development productivity via GitHub Copilot. This improvement has empowered Telstra to lessen code maintenance expenses and accelerate product launches, including self-service virtual support solutions.
Connected Future 30 Plan
As a facet of its Connected Future 30 initiative, Telstra has equipped 75% of its workforce with AI tools, and almost 9000 staff members have participated in AI training programs. This strategy also involves a partnership with Accenture to reduce complexity in systems and phase out outdated platforms.
Partnerships and Outsourcing
Telstra intends to outsource 209 positions to India as part of its collaboration with Accenture. CEO Vicki Brady assures that these challenging decisions are designed to provide quicker advantages to both customers and the enterprise.
Financial Results
Telstra reported a 14% growth in cash EBIT and a 10% rise in net profit after taxes for the first half of 2026. The mobile sector led with an EBITDA growth of $93 million, alongside substantial growth in the fixed consumer and small business segments.
Managing Business Complexity
Telstra is tackling business complexity through collaborations with Infosys and Accenture, aiming to streamline enterprise operations and expedite its data and AI development plans.
Conclusion
Telstra’s focus on AI is aimed at achieving a balance between cost efficiency and operational advantages, ensuring sustainable value. While financial outcomes have been favorable, the company remains cautious about rising costs and is dedicated to utilizing technology and partnerships to improve customer experiences and business results.