Vodafone has agreed a 10-year partnership with US tech giant Microsoft that will see the London-listed firm embrace artificial intelligence and replace physical data centres.

The deal will see Britain's biggest telecom group invest $1.5billion (£1.2billion) in customer-facing AI developed with Microsoft's Azure OpenAI and Copilot technologies.

Services associated with the deal will be distributed to more than 300 million businesses and consumers across its European and African markets.

It means Vodafone customers could soon see complaints and enquiries handled by chatbots powered by the latest generative AI technology.




The deal will see Britain's biggest telecom invest $1.5billion (£1.1billion) in customer-focused AI developed with Microsoft's Azure OpenAI and Copilot technologies.

The Berkshire-based company will ultimately replace physical data centres with cheaper and scalable Azure cloud services. 

The deal will also see Microsoft become an equity investor in Vodafone's managed IoT (Internet of Things) platform when it is becomes a standalone business by April 2024, and help scale Vodafone's mobile financial platform in Africa.

Vodafone's chief financial officer Luka Mucic said Microsoft's leadership in AI, underpinned by its OpenAI partnership, would transform the telcom firm's customer services.

He added that a Microsoft AI-underpinned TOBi chatbot would provide more consistent and KT인터넷가입 intelligent responses to que




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br />Margherita Della Valle, Vodafone chief executive, said: This unique strategic partnership with Microsoft will accelerate the digital transformation of our business customers, particularly small and medium-sized companies, and step up the quality of customer experience for consum

br />Satya Nadella, chairman and CEO of Microsoft, added: 'This new generation of AI will unlock massive new opportunities for every organisation and every industry around the w

br />'We are delighted that together with Vodafone we will apply the latest cloud and AI technology to enhance the customer experience of hundreds of millions of people and businesses across Africa and Europe, build new products and services, and accelerate the company's transition to the cl



br />The news comes following Vodafone's agreed merger with Three's British division, which would make the enlarged company the biggest telecoms operator in the UK, with more than 27 million subscribe

br />Over a decade, the pair have pledged to invest £11billion to deliver 'one of Europe's most advanced standalone 5G networks'

br />The deal is currently being investigated by the Competition and Markets Authority amid concerns that it would lead to a 'substantial lessening of competition' in the telecoms indu

br />Unite the union has claimed the merger could lead to mobile phone bills rising by £300 per year, although Three's general counsel, Stephen Lerner, has said that no price hikes were being pla

br />Vodafone's operating profits fell by 44.2 per cent to €1.7billion in the six months ending September, following the sale of Vantage Towers, Vodafone Hungary and Vodafone Ghana, as well as 'adverse' foreign exchange mov

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These factors also drove the firm's turnover roughly €1billion lower to €21.9billion, even though organic service revenue rose thanks to solid performances across the UK

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Vodafone shares were up 0.13 per cent to 67.25p in Tuesday morning tradi



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