Sydney, April 25, 2026, 08:02 (AEST)
Telstra Group Limited CEO Vicki Brady says artificial intelligence is now handling 30% of customer queries through the company’s website and app—a concrete figure that puts a number on the telco’s expanding use of the tech at the front line. The generative AI assistant, which generates responses and completes tasks based on data patterns, rolled out last November. It was added to Telstra’s app in March, letting customers request plan changes, adjust accounts, and troubleshoot issues.
The timing isn’t incidental. Telstra wants to prove AI isn’t just for pilots or internal dashboards anymore; it’s moving into a core, high-traffic slice of operations, where labour costs, customer queues, and churn all collide.
Microsoft rolled out its biggest Australian investment yet, putting A$25 billion on the table through 2029 for AI infrastructure, security, and workforce development. CEO Satya Nadella said the country stands to translate AI into “real economic growth and societal benefit.” By the end of 2029, Microsoft aims to boost its local commercial cloud and AI/GPU capacity by over 140%. Source
Speaking at Microsoft’s AI Tour in Sydney, Brady said Telstra has slashed its data platforms—from 80 down to 20, with plans to hit just three. The company also pared back its software partners, dropping from over 400 to two. Right now, she told the audience, 75% of Telstra teams are tapping AI tools at least once a week, and the goal is to take that up to 85% by year’s end.
Telstra’s push into AI goes beyond customer service bots. Back in March, the company announced it had teamed up with Red Hat, Dell Technologies and Cisco to test an AI-driven “self-healing” network. The proof-of-concept project is designed to spot and fix certain network issues automatically, cutting down on the need for people to step in. Telstra.com
Telstra is moving in a market where size counts. As of June 2025, the Australian Competition and Consumer Commission put Telstra’s share of the retail mobile market at 41%, keeping it ahead of Optus at 29% and TPG Telecom on 17%. Together, the three held 87% of the sector.
That’s where the AI push stands to set Telstra apart. Handling day-to-day queries more quickly could shore up its premium image, even as competitors ramp up pressure on both pricing and network reach. But a misstep in the transition? The very same tech risks fueling a new wave of customer frustration.
There’s already pressure on costs. Back in February, Telstra posted a 9.4% bump in half-year profit, upped its share buyback to a potential A$1.25 billion, and announced a 10.5 Australian-cent interim dividend.
Money is flooding into Australia’s AI sector at a rare clip. eToro’s Josh Gilbert, speaking to Reuters, called Microsoft’s investment a “serious vote of confidence” in Australia’s AI ambitions. Gilbert also pointed out the move is aimed at shoring up Azure’s standing with big business clients. Reuters
The risk is right there. AI trims time and cost, but only if it delivers a clean solution. When it comes to billing disputes, vulnerable customers, or fault reports needing actual judgement, staff still have to step in. If the handoff falters, Telstra’s supposed gains just don’t materialize.
Telstra has finally attached a number to its pledge: 30% of web and app queries. That figure alone doesn’t confirm AI is set to overhaul the telco’s entire cost structure, but this is more than a bullet point buried in some strategy presentation.
