Telstra, Accenture Lock In 7-Year Venture to Develop AI

A Telstra store on Melbourne's central business district in Melbourne, Australia on June 20, 2018. William West/AFP via Getty Images

Telecom giant Telstra and global consulting firm Accenture have announced a proposed seven-year joint venture (JV) to fast-track Telstra’s data and artificial intelligence (AI) initiatives.

The partnership aims to enhance network performance, improve customer experiences, and streamline operations, leveraging Accenture’s $3 billion investment in AI technologies.

The JV will combine specialists from Telstra and Accenture’s Data & AI teams to develop a cutting-edge data and AI ecosystem. A core focus will be the creation of agentic AI capabilities for better end-to-end task optimisation.

Tools will also be designed to increase AI fluency among Telstra’s workforce.

Telstra CEO Vicki Brady highlighted the partnership’s potential.

“We’ve made strong progress on our AI goals with hundreds of value-driving AI use-cases. This includes tools like AskTelstra and One Sentence Summary, which enhance our customer support,” she said.

Workforce and Operational Overhaul

The partnership involves significant workforce integration. Telstra’s core Data & AI employees in Australia and India will be offered roles within the JV, with the option to return to Telstra after seven years.

Vendor consolidation will also streamline operations, reducing 18 data and AI providers to just two JVs—Quantium Telstra and the proposed JV with Accenture.

Accenture Chair and CEO Julie Sweet said they were proud of their long-standing collaboration with Telstra.

“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,” she said.

Ownership and Strategic Control

Accenture will hold a 60 percent stake in the JV, with Telstra retaining 40 percent and complete control of its AI strategy.

The partnership, subject to employee and union consultation, aims to deliver AI-driven solutions while maintaining Telstra’s commitment to responsible AI practices.

The JV represents a strategic leap for Telstra, enabling it to build on prior collaborations, such as its partnerships with Microsoft and Quantium, and consolidate its position as a leader in telecommunications.

Expanding Connectivity with SpaceX

In a separate development, Telstra recently announced a partnership with Elon Musk’s SpaceX to enhance connectivity in rural and remote areas.

The collaboration will utilise SpaceX’s Starlink-to-Mobile technology, providing satellite broadband directly to compatible mobile devices in regions with limited traditional network coverage.

Following Optus’s earlier initiative, Telstra has become the second major Australian telco to enter the direct-to-handset satellite communications market. This move underscores Telstra’s commitment to bridging connectivity gaps across Australia.

The SpaceX collaboration highlights Telstra’s strategy of leveraging cutting-edge technologies to meet diverse customer needs and expand its service reach.