Apple cuts employee AI budgets in cost-control push: Report

Last year, Apple announced a range of AI-driven features called Apple Intelligence that included new capabilities such as rewriting emails and summarizing a cluttered inbox. (Image: Reuters)

Apple has reduced employee budgets for AI usage as part of a broader effort to rein in costs, even as it seeks to expand the use of AI across its operations, Bloomberg News reported on Wednesday, citing people familiar ⁠with ​the matter.

Apple last month cut the daily AI spending allowance for some engineers to $200 from $300, the ​report said.

The company is considering ⁠further reductions for some engineering teams, potentially lowering daily limits to $100.

Some non-engineering groups already operate under a $100 daily cap, which could be reduced to as little as $25, the report added.

Employees needing greater access to AI tools would be able to seek ⁠exemptions from ⁠senior executives, according to Bloomberg.

The budgets cover AI “tokens,” the units ⁠of ‌data processed by models such as ​OpenAI’s ChatGPT, Anthropic’s Claude ‌and Google’s Gemini.

The move reflects a broader trend among technology companies scrutinizing ‌AI-related expenses after ​initially encouraging ​widespread ​adoption.

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Apple did not immediately respond to a Reuters request ​for comment.

The move comes amid ⁠broader efforts by companies to rein in AI spending. Bloomberg recently reported that Goldman ‌Sachs restricted ⁠access to some AI coding tools following a review of productivity ​and risk management.