Deutsche Telekom is replacing phone menus with AI agents, its AI chief says

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Deutsche Telekom is replacing the automated phone menus on its customer service lines with AI agents, chief AI officer Kartik Sheth said. The share of customer interactions that never reach a human grows by one or two percentage points every month, he said.

Sheth spoke on Thursday at HumanX in Amsterdam with Business Insider senior correspondent Hugh Langley. Deutsche Telekom operates in 10 European countries, from Poland to Greece, with Germany the largest. Each has its own tech stack, languages, accents and regulations, he said.

“There is no argument that replacing an IVR with AI gives you better experience,” Sheth said.

An AI agent answers 24 hours a day, in 40 to 60 languages, with no hold time, he said. It also classifies calls better. In some countries callers already no longer reach the menu, and in others that will be true within months. Calls an AI agent can handle...

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