Apple Cuts Engineers’ AI Spending Budgets Amid Rising Technology Costs
The iPhone maker is reducing how much employees can spend on artificial intelligence tools, even as it encourages greater AI adoption across its engineering and business operations.
Apple has begun tightening its employees’ artificial intelligence spending allowances as part of a broader effort to control rising operational costs. According to a Bloomberg report published on November 4, 2026, the company reduced the daily AI spending limit for some engineers from $300 to $200 in October. Further reductions are being considered, with some engineering teams potentially facing a daily allowance of just $100.
The restrictions also affect employees outside engineering departments, many of whom already operate under a $100 daily spending limit. Apple is reportedly considering reducing that amount to as little as $25 for certain teams. These budgets cover the cost of AI tokens, which are the units of information processed by models such as Anthropic’s Claude, OpenAI’s ChatGPT and Google’s Gemini. Employees who require additional access will be able to request approval from senior executives.
The decision comes as Apple’s overall spending continues to increase. The company’s research and development expenses reportedly rose by 32 per cent to $45.8 billion in fiscal year 2026, partly driven by higher AI infrastructure costs and employee-related expenses. Some teams have also been instructed to switch to cheaper AI models or use artificial intelligence systems that operate directly on their devices. While some employees believe the previous allowances were unnecessarily generous, others are concerned that the restrictions could signal broader cost-cutting measures.
Apple’s move reflects a growing trend among major technology companies seeking to balance AI investment with financial efficiency. Companies including Microsoft, Tesla, Uber and Meta have also introduced measures to control employee spending on artificial intelligence tools. The challenge for Apple is reducing unnecessary expenses without limiting the productivity improvements that AI promises. The company has not disclosed how much it expects to save from the new restrictions.
