Apple Cuts Employee AI Budgets, With Further Reductions Planned [Report]

Apple has cut daily AI spending allowances for some engineers from $300 to $200 and is planning further reductions, even as it encourages employees to use the technology more, according to Bloomberg.

The initial cuts took effect in October. Some engineering teams could see their daily limits fall further to $100, while certain non-engineering teams could drop from an existing $100 cap to as little as $25. Those additional reductions remain under consideration, and employees who need larger budgets for their jobs will be able to seek exemptions from senior leadership.

The allowances cover tokens, the units of text and other data that AI models process when handling requests. Coding and debugging can consume large quantities, particularly with more advanced models. Employees have access to services including Claude, ChatGPT, and Gemini, and some teams are being directed toward cheaper models or ones that run locally on their devices.

How much the restrictions will save is unclear. Some employees told the publication that few workers had been using their full $300 allowance, making the old ceiling unnecessarily generous. Further cuts could have a greater effect on heavier users who would need approval to keep using the same tools.

Others view the changes as another sign of cost cutting and worry about possible layoffs. Some divisions have hired outside consultants to review efficiency and operations, adding to concerns about future restructuring. Apple declined to comment.

CEO John Ternus has been pushing for faster product launches and fewer management layers. The internal spending limits accompany an effort to incorporate AI more deeply into engineering and other daily work, rather than a retreat from the technology.

Companywide spending is still rising. Research and development expenses increased 32 percent in fiscal 2026, driven by infrastructure and AI costs, while total operating expenses rose 22 percent to $75.5 billion.