Apple is slashing AI budgets—the latest company to do so

As Apple reduces its AI budgets, it joins a growing number of tech companies grappling with the financial burden of AI adoption. According to Bloomberg, the tech giant is cutting employee budgets for AI token usage, even as it remains committed to deploying AI to improve efficiency. The daily spending limit for AI usage has already been reduced from $300 to $200 for certain engineers, with a potential further reduction to $100 or even $25 in some cases.

This move aligns with Apple's push for increased AI usage in daily operations, but also reflects the industry-wide challenge of justifying massive AI investments. Some employees reportedly questioned the necessity of the $300 limit, while others saw it as a sign that Apple is cutting costs and may resort to layoffs. Apple's efforts to streamline operations and reduce management layers, as suggested by recently-appointed CEO John Ternus, may further impact the workforce.

The trend of tightening budgets is evident across the tech industry, with companies like Uber, Meta, Microsoft, and Tesla also implementing token limits on employee AI usage or offering voluntary buyouts to stem job losses. As layoffs continue to be a looming threat, workers are increasingly concerned about AI's role in selecting employees for cuts.