Yahoo Finance

Momentum is 'on our side’ going into AI era: T-Mobile CEO

Yahoo Finance executive editor Brian Sozzi sits down with T-Mobile (TMUS) CEO Mike Sievert to discuss the company’s momentum going forward, including its artificial intelligence (AI) integration and the company’s position amid changing macroeconomic conditions. “We’ve got momentum on our side,” Sievert says, explaining, "when we did our Capital Markets Day three and a half years ago and said we would penetrate smaller markets in rural areas and get after enterprise and convince people we have the best network, there was no proof." Sievert goes on to say that the company now has "momentum on our side years later" because its "formula is working." “Network is the essential fuel of this industry, and when we made our bet back in the [2010s] that the 5G revolution would unfold in mid-band on smartphones… it turns out we were right, and we were able to use the merger with Sprint to leapfrog everyone from dead last in the 4G LTE era to first and best in the 5G era.” T-Mobile held its investor day on Wednesday, September 18, as the wireless network operator pursues new acquisitions following its 2020 merger with Sprint. The company has pending mergers with US Cellular, Metronet, and Lumos. Sievert outlines how each brand “has a different story” that compliments T-Mobile’s portfolio. T-Mobile announced a deal with OpenAI as it integrates AI tech into its customer support systems: “Our job is to figure out, first and foremost, how do we prevent the need for you to call us in the first place. Every time you finally have to call us, something's gone wrong. We haven't predicted your intentions correctly. And so IntentCX, which is the model we're creating with OpenAI, is all about using the vast amount of data at our fingertips to curate an experience for you at T-Mobile that makes your experience successful so you don't have problems in the first place." Sievert forecasts a 75% reduction in "calls offered to our human agents at our stores and in our care centers, but those remaining 25% will be some of the gnarliest ones and so it will require a higher level of expertise" and human engagement. The CEO also sheds some light on demand for Apple’s (AAPL) new iPhone 16 and comments on the economic environment after the Federal Reserve opted to cut interest rates in September. For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Naomi Buchanan.