Telstra (ASX:TLS) share price edges lower amid new AI joint venture

A virtual army of new internet of things (IoT) devices are connected in Australia each week.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Telstra Corporation Ltd (ASX: TLS) share price is edging lower in morning trade, down 0.4% to $3.96 per share.

The S&P/ASX 200 Index (ASX: XJO) is heading the other way, up 0.3% after briefly dipping into the red on opening.

That's this morning's price action.

Below we look at the telco giant's latest foray into the world of artificial intelligence (AI).

A woman holds her hand out under a graphic hologram image of a human brain with brightly lit segments and section points.

Image source: Getty Images

What AI plans are in the pipeline?

According to Telstra's head of product and technology, Kim Krogh Andersen, every week sees the company connect another 5,000 internet of things (IoT) devices. These range from 'smart' household appliances to broader home monitoring and environmental control systems.

As the Australian Financial Review reports, this vast amount of new data is driving a surge in demand for a limited supply of tech savvy employees.

Which brings us to Telstra's new joint venture (JV) with data and analytics company Quantium, 75% owned Woolworths Group Ltd (ASX: WOW).

Telstra's CEO, Andy Penn said the JV will speed up the telco's adopted of AI, and aid in its recruitment efforts of tech talent "eager to work on some of the biggest data sets in the country".

According to Penn (quoted by the AFR), "There is an absolute war for talent, and this talent in particular. But the single biggest defining difference is the data science problems that those people get to come and work on and to solve."

Penn continued:

We will effectively identify the problems and the projects that we can work jointly on, and then we'll apply our respective resources to go solve them. This is about accelerating what we're already doing, but accelerating it by partnering with these guys, who are absolutely world-leading in the work that they're doing.

Commenting on the JV with Telstra, Quantium's CEO, Adam Driussi said, "What we need to be careful of is how we deploy our resources. So, we're not looking to do one-off small projects with a whole series of clients. We'd rather have big, deep partnerships with leading brands and that's the way that we can then really work on the biggest problems for those clients."

Telstra share price snapshot

The Telstra share price is up 31% in 2021, compared to the 12% year-to-date gain posted by the ASX 200.

Over the past month, Telstra shares have gained 3%.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Communication Shares

A kid and his grandad high five after a fun game of basketball.
52-Week Highs

Telstra just hit a 10-year high. Has this ASX income giant still got more to give?

Telstra’s breakout to a multi-year high is turning heads.

Read more »

A gavel is placed on a stand on a desk with a legal representative wearing a suit in the background.
Communication Shares

The Kyle and Jackie O saga continues, with a massive new legal claim filed

ARN Media has fielded its second massive legal claim in as many weeks.

Read more »

Five young people sit in a row having fun and interacting with their mobile phones.
Communication Shares

Forget Telstra shares! Buy this fast-rising ASX 200 telco stock instead

A top fund manager expects this surging ASX 200 telco stock could deliver more earnings upgrades.

Read more »

A man wearing a colourful shirt holds an old fashioned phone to his ear with a look of curiosity on his face as though he is pondering the answer to a question.
Communication Shares

Is the Telstra share price a buy after increasing mobile plan prices?

Is this a good time to invest in Telstra shares?

Read more »

ASX bank share price represented by white Piggy Banks on green background
Communication Shares

A major funding move is lifting this ASX stock today

EVT shares rise after securing new $750 million debt facility.

Read more »

Two male ASX investors and executives wearing dark coloured suits sit at a table holding their mobile phones discussing the highest trading ASX 200 shares today
Communication Shares

Guess which ASX 200 telco stock is jumping 7% today

Investors have responded positively to the release of this telco's results.

Read more »

Man puts hands in the air and cheers with head back while holding phone and coffee.
Communication Shares

Can Telstra Group shares keep soaring after hitting a 10-year high?

After a strong rally, expect slower gains—not another surge.

Read more »

Two little boys playing with helmets dressed up in suits.
Communication Shares

Which media company's shares are on the slide after big legal news?

This potential court battle could be worth tens of millions of dollars.

Read more »