Deutsche Telekom on Monday said it expects AI and automation to generate around 1.1 billion euros ($1.24 billion) in gross savings outside the U.S. by 2027, with an additional around 2.5 billion euros in indirect savings by 2030. Both figures are measured against a 2023 baseline.

The company announced the targets ahead of a company AI investor event. Chief Executive Tim Höttges presented the projections as part of a broader strategy in which AI reshapes both operations and product development across the group’s European infrastructure.

“AI is fundamentally transforming Deutsche Telekom,” Höttges said in a statement. “It makes our networks even better and smarter, our service more personalized, and opens up new business models.”

The company said it is deploying AI in four areas where it identified “large volumes of repetitive” work: network operations, customer service, software development, and administrative processes.

The savings figures are stated on a gross basis and exclude the U.S. market. The company said integrating AI into its networks and European infrastructure will create new services for customers and increase revenue.

To support the revenue side, Deutsche Telekom is developing a platform that allows companies to automate recurring tasks.

It is also building an AI assistant that can translate phone conversations in real time, answer questions, and summarize content — capabilities the company said will pave the way for additional services and new rate plans.

The revenue projections are modest relative to the cost-savings targets. Deutsche Telekom expects to generate around 250 million euros in AI-related revenue from businesses outside the U.S. in 2026, rising to around 800 million euros by 2030.

The company confirmed its full-year guidance and medium-term targets without specifying changes tied to the AI rollout.