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Apple Cuts Employee AI Budgets Amid Rising Technology Costs

Staff reactions are mixed, with some saying the existing allowance was rarely fully utilised, while others fear broader cost-cutting and potential layoffs.

Apple is reducing employee budgets for artificial intelligence usage as part of a cost-cutting effort. Pic via(@business)

Apple has reduced daily artificial intelligence spending allowances for some engineers from $300 to $200 as part of a broader cost-control effort, Bloomberg News reported.

The move follows CEO John Ternus's push for a leaner organisation, amid a 32 per cent increase in research and development expenses to $45.8 billion this fiscal year.

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Some non-engineering teams already face a $100 daily limit, which Apple has reportedly considered reducing to as little as $25. Employees seeking greater access to tools such as ChatGPT, Claude and Gemini may need approval from senior leadership.

Staff reactions are mixed, with some saying the existing allowance was rarely fully utilised, while others fear broader cost-cutting and potential layoffs.

Similar restrictions are emerging across the technology sector, with Microsoft, Tesla and Uber also introducing limits on employee AI spending.

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