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

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.

Here are the details:

• 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

• 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)

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