Deutsche Telekom said it plans to accelerate growth in revenue and earnings through 2027, turning to artificial intelligence to boost its top line and trim costs.

The German telecommunications group said Thursday that expectations of faster growth will leave it with 15 billion euros ($16.41 billion) in available funds by 2027. The company aims to use this surplus to either increase its stake in T-Mobile US or launch fresh buybacks, on top of a program of 2 billion euros it will carry out next year, dividend payments and investments.

Most Read from The Wall Street Journal

• Musk Shows Off Driverless Robotaxi to Be Priced Under $30,000

• Inflation Continues Its Bumpy Decline With Mixed September Reading

• Interest Rates Will Be Higher in the Future, Especially if Trump Is President

• Jeep-Maker Stellantis Outlines CEO Succession Plan, Management Shake-Up

• Social Security Is Giving Retirees a 2.5% Increase, the Smallest Raise in Years

Deutsche Telekom has been looking to bolster its exposure to the U.S., a bet that helped it become Europe’s largest telecoms company with a market value that rose about 63% since the last time it provided mid-term targets in May 2021 to some 133 billion euros.

A merger of T-Mobile US with Sprint was completed in 2020, creating a giant that soon became the second-biggest U.S. cellphone carrier by subscribers but diluting Deutsche Telekom’s stake in the enlarged business. The German company achieved majority ownership in the U.S. business last year, and had a stake of 50.4% at the end of June.

Deutsche Telekom said AI would play a key role in its strategy in coming years. It is looking to tap into revenue opportunities valued at around 1.5 billion euros with additional products and services including AI offerings, phone insurance and payments. T-Mobile US last month struck a deal with ChatGPT maker OpenAI to build an AI platform designed to help it gain and retain customers.

AI and automation will also help the German group to bring down costs, with savings of 700 million euros expected by 2027, it said.

Deutsche Telekom expects net revenue and service revenue to grow at an annual rate of 4% between 2023 and 2027. The company’s previous targets for the 2020-24 period called for annual revenue growth of 1% to 2%.

The group’s adjusted earnings before interest, taxes, depreciation and amortization and after lease expenses—a closely watched metric in the industry—is expected to rise by between 4%-6% for the same period. It had targeted annual growth of 3% to 5% in the 2020-24 period.

Deutsche Telekom forecast adjusted earnings per share would rise to around 2.50 euros by 2027, ahead of analysts’ expectations of 2.44 euros, according to consensus expectations provided by the company.