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…
Apple is reducing employee access to artificial intelligence tools in an effort to control costs, according to Bloomberg. In October, the company limited some engineers to a daily AI budget of $200, down from $300. Further cuts may be on the horizon, with daily allowances potentially dropping to $100 for certain engineers. Some teams already have a $100 daily cap, while others could see their spending limited to as little as $25.
Apple is encouraging teams to utilize more affordable AI models or opt for on-device AI solutions. Employees needing a larger budget can request an increase from executives. Engineers typically enjoy the largest AI budgets due to the high token consumption required for coding assistance. Apple permits the use of various AI models, including Claude, ChatGPT, and Gemini.
However, some employees told Bloomberg that few were utilizing the full $300 daily allowance, suggesting the savings may be minimal. The company has also engaged external productivity consultants for some divisions to help offset the AI cost reductions. These budget cuts, coupled with reviews of employee performance, have raised concerns about potential restructuring at the tech giant.
Apple CEO John Ternus, who assumed his role on September 1, is reportedly aiming to streamline corporate structure and reduce bureaucracy to achieve greater efficiency with fewer employees.
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