Rising AI costs push Apple to cut budgets

Apple is reportedly tightening its internal spending on artificial intelligence as it looks to control rising costs associated with the technology. 

The company has started reducing the daily AI budgets available to employees, particularly its engineering teams, per Bloomberg.

In October, Apple lowered the daily spending limit for engineering teams from $300 to $200. Further cuts could bring the allowance down to $100 for some. Other department employees may face even stricter limits, with proposed budgets as low as $25 a day.

The move marks a shift in Apple’s approach after the company increasingly integrated AI into its engineering operations.

Several technology companies previously encouraged employees to use AI tools extensively to improve productivity. However, growing expenses and uncertain returns have forced businesses to reconsider their spending.

Apple’s latest cuts highlight mounting pressure to make AI investments financially worthwhile.