ASX-listed Telstra Corporation Limited (AU:TLS) has agreed to commit $700 million in its ambitious plan to expand AI (artificial intelligence) tools across its operations. The company will invest $100 per year over a seven years, marking it as the most significant AI rollout by a major Australian company to date. As part of this initiative, Telstra will collaborate with U.S.-based Accenture (ACN) to establish a joint venture.
Stay Ahead of the Market:
- Discover outperforming stocks and invest smarter with Top Smart Score Stocks
- Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener
Telstra Group is a leading communication and technology services company in Australia. Meanwhile, Accenture is a global IT company offering a wide range of services.
Telstra, Accenture Launch AI Venture
The proposed joint venture with Accenture is a part of a broader strategy of Telstra to simplify its vendor relationships and reduce its AI providers from 18 to just two. According to the terms, Accenture will hold a 60% stake in the joint venture, while Telstra will own the remaining 40%, maintaining control over its data and AI strategy roadmap.
The joint venture aims to enhance Telstra’s business operations by integrating advanced AI systems to improve team efficiency. Moreover, the companies plan to create tailored AI tools and training programs to boost the AI skills and knowledge of Telstra’s employees.
Telstra further highlighted this partnership with Accenture as the next phase of its AI development. The company noted that its previous collaboration with American tech giant Microsoft (MSFT) and its joint venture with Australia-based Quantium have been crucial in advancing its AI journey.
Is Telstra Share a Good Buy?
According to TipRanks’ rating consensus, TLS stock has received a Moderate Buy rating, based on one Buy recommendation from Jefferies. The Telstra share price target is AU$4.51, which is 11.72% above the current price level.
