Australia’s largest telecommunications company, Telstra, is set to invest $700 million in enhancing its artificial intelligence (AI) capabilities through a new partnership with consulting firm Accenture. This move follows investment firm Macquarie’s announcement of plans to allocate up to $US5 billion ($8 billion) towards data centers in collaboration with US-based provider Applied Digital.
Telstra’s CEO, Vicki Brady, revealed that the company will dedicate $100 million annually over the next seven years to this initiative. The collaboration will involve specialists from both Telstra and Accenture working together to optimize business processes using AI. As part of this strategy, Telstra will reduce its current 18 data and AI providers to just two and develop specialized AI tools to enhance efficiency.
This investment marks one of the largest commitments to AI by an Australian company to date, although it may lead to further job reductions at Telstra, which previously announced plans to cut approximately 2,800 positions, or about 10% of its workforce. The joint venture will undergo consultations with employees and unions.
Brady emphasized the company’s progress in AI, stating, “We’ve made strong progress on our AI goals and already have hundreds of value-driving AI use-cases across the business.” She added that the ambition extends beyond merely implementing AI tools, aiming to create self-healing networks and transform customer experiences.
In June, Telstra became the first Australian company and one of six globally to join the UNESCO business council focused on ethical AI, which aims to develop an ethical impact assessment tool and initiatives that ensure technology benefits the public.
Accenture will hold a 60% stake in the joint venture, with CEO Julie Sweet highlighting that the program will foster innovation and deliver value to Telstra’s customers, employees, and shareholders.
Macquarie’s announcement comes amid a surge in investor interest in AI, with last year’s largest listing on the ASX being DigiCo, a data center venture. The 2025 Australian Tech Leaders survey identified AI as the predominant trend for the upcoming year, with tech executives believing it will be crucial for reversing Australia’s declining productivity.
