Apple is Putting Employees on an AI Budget

Apple is curtailing employee AI use to cut costs, reports Bloomberg. In October, Apple limited some engineers to $200 per day for AI spending, down from $300.

More cuts could be coming, with daily allowances for some engineers dropping to $100. Many groups outside engineering already have a $100 daily limit, but some teams could have their spending capped at $25. Apple is asking some teams to use less expensive models or switch to on-device AI. Employees who need a bigger budget will be able to ask executives for an increase.

Engineers at Apple have the largest budgets because using AI for coding can consume a large number of tokens. Apple lets employees use Claude, ChatGPT, Gemini, and other models. Some Apple employees told Bloomberg that few were using their full $300 daily limit, so the savings may be small.

Apple has also hired outside productivity consultants for some divisions. Combined with the AI cost cuts, the reviews have fueled worries about possible restructuring.

Apple CEO John Ternus took over on September 1, and he reportedly wants to reduce corporate hierarchy and bloat to accomplish more with fewer people.