Apple cuts employee AI budgets in cost-control push, Bloomberg News reports

Apple Reduces Employee AI Budgets Amid Cost-Control Measures and Broader AI Expansion

Apple's AI Budget Cuts and Industry Context

Nov 4 (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.

Details of Apple's AI Budget Reductions

Here are the details:

Changes to Daily AI Spending Allowances

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

Potential Further Reductions

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

Non-Engineering Group Allowances

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

Exemptions and Token Usage

• 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

Industry-Wide AI Cost Control Trends

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

• 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

(Reporting by Prathik Jayaprakash in Bengaluru; Editing by Shailesh Kuber)