Apple reduces employee budgets for AI token usage

Apple has initiated reductions to the daily budgets allocated to its engineering teams for AI token usage. Reports indicate that the previous daily cap of $300 has been lowered to $200 for some groups, with potential future reductions as low as $100. Other departments are already seeing caps as low as $100, with some facing further cuts to $25 per day.

This shift highlights a growing skepticism across the technology sector regarding the immediate return on investment for large-scale AI deployment. While companies continue to mandate the use of AI in daily operations, the expected productivity gains have often failed to materialize, leading firms to rethink their spending strategies.

Industry analysts note that these constraints are part of a wider effort by tech giants—including Meta, Microsoft, and Uber—to curb rising operational costs. Within Apple, the cuts have prompted internal concerns regarding potential broader workforce reductions as leadership looks to streamline management structures and maintain efficiency in a high-expenditure environment.