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Telstra, Australia’s largest telecommunications company, has unveiled its vision for the future, revealing that artificial intelligence will play a pivotal role in reshaping its business and workforce by the year 2030. The telco giant anticipates a smaller employee base driven by AI-powered efficiencies across various departments, from customer support to software development. While the transition won’t happen overnight, Telstra has made it clear that embracing AI is not only inevitable—it’s necessary for future growth and competitiveness.
I. AI to Reshape Workforce and Business Operations
1. Anticipating a Leaner Workforce
During its annual investor presentation, Telstra’s CEO Vicki Brady shared the company’s outlook on integrating artificial intelligence into its core operations. She stated that while the exact shape of Telstra’s workforce in 2030 remains uncertain, it is highly likely the company will operate with fewer employees. Brady emphasized that AI would become a critical enabler for their workforce, enhancing productivity and redefining operational strategies.
2. Embracing the Pace of AI Evolution
Brady described her recent visit to the United States as a moment of realization regarding the rapid progression of AI technologies. A year ago, the industry’s focus was on concerns like hallucinating AI models, but now the conversation has shifted to the emergence of agentic AI—systems capable of performing tasks independently. Although Telstra has not yet deployed fully autonomous AI agents, Brady confirmed that internal projects were underway, and further integration could be expected soon.
II. AI Deployment in Customer Service and IT
1. Improving Customer Experience Through AI
Telstra’s Chief Financial Officer, Michael Ackland, highlighted that customer interaction is one of the areas with the most potential for AI integration. He explained that the company currently spends over $2 billion annually on functions such as sales, customer service, billing, and account management. Ackland believes that artificial intelligence has the power to revolutionize these areas by automating repetitive tasks, improving efficiency, and enhancing service delivery.
2. Generative AI Already in Use
Telstra has already implemented generative AI solutions in its customer service operations. One application includes using AI to summarize customer service calls—an activity that previously required manual input from employees. This not only saves time but allows human agents to focus on more complex and value-driven customer needs.
3. Software Development and Network Maintenance
Ackland also pointed to the over $1 billion spent on IT and software development each year, suggesting that AI could significantly reduce this expenditure. Autonomous systems capable of self-diagnosing and resolving network issues could further minimize disruptions while driving down operational costs. This proactive approach to network maintenance is expected to be a major component of Telstra’s cost-saving strategy.
III. Broader Industry Implications and AI Readiness
1. Industry-Wide Impact and Caution
The potential of AI to streamline operations isn’t limited to Telstra. Other major telecom players, such as Optus, have also acknowledged the role AI will play in the future. However, industry analysts have voiced concerns regarding the current limitations of AI. Following job cut announcements from cybersecurity firm CrowdStrike, experts have noted that productivity gains from AI investments are not always immediate or guaranteed. Gartner’s Aaron McEwan expressed skepticism about companies rushing to reduce staff without seeing measurable AI-driven returns.
2. Strategic Workforce Transition
Despite anticipating a reduction in workforce, Telstra is committed to maintaining high employee engagement. The company’s Connected Future 30 strategy outlines a goal to rank in the top 25% of global firms in both employee satisfaction and AI maturity by 2030. This signals that while automation may reduce headcount, Telstra intends to invest in reskilling and upskilling its employees to work alongside emerging technologies.
3. Ethical Integration and Employee Impact
Brady stressed that while AI will likely automate many processes, Telstra is taking a thoughtful approach to its deployment. The company does not currently envision AI agents replacing human representatives in direct customer interactions. Instead, AI will act as a support tool, helping staff deliver better service and solve problems more effectively.
Conclusion
Telstra’s forward-looking strategy places artificial intelligence at the heart of its transformation over the next five years. From streamlining operations and improving customer service to reducing operational costs and embracing agentic AI, the telco aims to remain at the forefront of digital innovation. While workforce reductions may be part of the equation, the company is also focused on maintaining employee engagement and preparing its team for a future where humans and machines work in tandem. As AI continues to mature, Telstra’s cautious yet ambitious approach may set a new standard for how large enterprises navigate the balance between technology, efficiency, and human capital.
