Telecommunications giant Telstra plans to spend $700 million – $100m annually – over the next seven years to ramp up its data and artificial intelligence (AI) capabilities in a joint venture with its long-time partner Accenture.
The US consultancy firm is already pouring $3 billion into its own AI capabilities and will own 60% of the JV, with Telstra holding the other 40% and retaining control over its data and AI strategy and roadmap, with Accenture helping deliver it.
Telstra CEO Vicki Brady said a key focus is reinventing business processes through new capabilities like agentic AI, enabling teams to work with intelligent AI ecosystems. The JV, run by joint global leadership, will oversee specialists from Telstra and Accenture’s data and AI teams to build specialised AI tools as well as developing data and AI fluency across Telstra’s workforce. The telcoe plans to consolidate vendor support from 18 data and AI providers and partners down to two joint ventures – Quantium Telstra and the Accenture one.
The likely result is more job losses amid existing plans to shed 10%, nearly 3000 jobs, from the telco’s current workforce.
The proposed seven-year joint venture is subject to consultation with Telstra’s employees and unions. The core Data & AI workforce, based in Australia and India, would receive an offer to join the JV, then at the end of the project, once again be offered a role at Telstra.
In a statement announcing the plan, the telco said the JV “is expected to become more efficient and streamlined as the acceleration of Telstra’s data and AI roadmap is delivered”.
Telstra CEO Vicki Brady said the JV would leverage Accenture’s global expertise to scale AI responsibly and quickly.
“We will get there much faster and more efficiently by collaborating in an ecosystem of likeminded global leaders, leveraging each other’s strengths and accelerating innovation,” she said.
“Our strategic partnership with Microsoft and our joint venture with Quantium have been critical enablers in our AI journey so far, and this joint venture with Accenture will propel us into the next phase of our AI evolution.”
Accenture CEO Julie Sweet said the world is entering a new era of AI-driven reinvention.
“We are proud of our long-standing collaboration with a visionary leader like Telstra, and committed to accelerating its bold AI fuelled business strategy, which will set new standards for the telecom industry.”
“We are also excited about combining our experience, talent and capabilities with Telstra’s to drive innovation and value for Telstra’s customers, people, and shareholders today and in the future.”
Trending
Daily startup news and insights, delivered to your inbox.