What is artificial intelligence and machine learning?

Artificial intelligence (AI) is a broad term used to describe technologies able to solve problems and perform tasks without direct human involvement. Machine learning is a branch of AI which uses computer algorithms to create models from data.

What is an AI system?

In our business, AI is usually implemented as part of an ‘AI system’, which is a piece of software designed to perform a particular task or set of tasks.

Some AI systems are pre-programmed to only follow static rules and will follow those rules until someone changes them. Other AI systems are dynamic and change over time, such as when new data becomes available. Machine learning is often used to help build and run AI systems.

Why do we use AI and machine learning?

AI and machine learning can help us serve our customer’s needs by improving the speed or accuracy of decisions or by allowing decisions to be based on a broader range of data or considerations than a person might use if they were making the same decision.

For example, we may use an AI system to continually analyse a large set of operational data to identify and predict faults and issues that may impact our services, allowing for quicker rectification or prevention than a solely human process. This may be an improvement on manual review, which could take longer to detect issues, or not detect them at all. 

AI systems can also provide information and recommendations to decision makers, rather than making decisions directly. For example, an AI system may provide information to call centre staff so they can respond more quickly to customer queries. 

How we use AI and machine learning

We develop, improve and use a range of AI technologies including machine learning, generative AI and agentic AI to support a wide range of purposes, including:

  • as part of our internal operations
  • as part of our service delivery 
  • to help make decisions 
  • to improve our products and services 
  • to create new products and services 
  • to deliver different or better customer experiences 
  • to protect our customers
  • to keep customers informed of products and services that might be of interest.

Examples of where Telstra uses AI

  • Digital marketing and personalisation
    • We use AI in digital channels to personalise customer experiences, recommend relevant products, and deliver faster and smarter customer service outcomes
  • Credit assessment
    • We use AI in our credit assessment processes to help us quickly and consistently assess applications for products and services provided on credit
  • Summarising customer interactions and experiences
    • Our agents receive an AI-powered snapshot of your recent interactions — like case notes, orders, and payments — so they can help you faster and more effectively
    • Learn how we’re scaling up AI adoption.
  • Supporting our teams to find answers quickly
    • AskTelstra is our AI-powered assistant that helps agents quickly find answers to customer questions making support faster, smarter, and more consistent.
    • Learn how we’re scaling up AI adoption.
  • Fraud and scam detection
  • Fault detection and prediction
    • We use AI to proactively identify and resolve potential service issues —often before customers even notice — helping to deliver a more reliable and seamless experience.
    • Find out more about SmartFix.

Our commitment to responsible AI

At Telstra, we have a commitment to responsible AI. When implementing and using AI systems, we consider and adhere to the AI Ethics Framework developed by the Australian Government, which includes the AI Ethics Principles.

The AI Ethics Principles are:

  • Human, societal and environmental wellbeing: AI systems should benefit individuals, society and the environment.
  • Human-centred values: AI systems should respect human rights, diversity, and the autonomy of individuals.
  • Fairness: AI systems should be inclusive and accessible, and should not involve or result in unfair discrimination against individuals, communities or groups.
  • Privacy protection and security: AI systems should respect and uphold privacy rights and data protection, and ensure the security of data.
  • Reliability and safety: AI systems should reliably operate in accordance with their intended purpose.
  • Transparency and explainability: There should be transparency and responsible disclosure so people can understand when they are being significantly impacted by AI, and can find out when an AI system is engaging with them.
  • Contestability: When an AI system significantly impacts a person, community, group or environment, there should be a timely process to allow people to challenge the use or outcomes of the AI system.
  • Accountability: People responsible for the different phases of the AI system lifecycle should be identifiable and accountable for the outcomes of the AI systems, and human oversight of AI systems should be enabled.

Our overarching goal is to use AI to improve outcomes for our customers, our staff, and our business. To do this, we take steps to understand potential positive and negative impacts, and possible unintended consequences, that our AI systems can have on our customers, our people, and the communities in which we operate. By first taking time to understand the impacts, we can take steps to mitigate risks of negative outcomes if they could occur. 

We are also committed to the protection and security of our customers’ personal information as outlined in Telstra's Privacy Statement and we comply with all relevant privacy legislation.

Concerns with our use of AI or machine learning

If you believe the use of, or outcome from one of our AI, machine learning or automated systems has impacted you unfairly or unreasonably, you can make a complaint.

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