Apple has reduced daily artificial intelligence spending allowances for some employees and is considering further cuts, as chief executive John Ternus seeks to rein in costs while expanding the technology’s use across the business.
According to Bloomberg, the company lowered the daily spending cap for some engineers from $300 to $200 last month, with further reductions potentially bringing allowances for certain engineering teams down to $100. The changes are part of a broader effort to make Apple’s operations more efficient while encouraging staff to incorporate AI into their work.
Some non-engineering teams already operate under a $100 daily limit, but Apple is considering reducing this to as little as $25 for certain groups. Employees requiring higher allowances will be able to request exemptions from senior leadership, Bloomberg reported, citing people familiar with the discussions.
The restrictions apply to tokens, the units of text and other data processed by AI models. Providers typically charge customers according to token consumption, with more advanced models and complex tasks, including software development and debugging, generally requiring greater volumes.
Apple employees have access to several AI services, including Anthropic’s Claude, OpenAI’s ChatGPT and Google’s Gemini. Some teams are being directed towards cheaper models or AI systems that run locally on devices.
The reductions have prompted mixed reactions among employees, according to Bloomberg. Some reportedly believe few colleagues were using their previous $300 allowances in full, while others view the changes as evidence of wider cost-cutting efforts and have expressed concerns about potential redundancies.
The spending restrictions come as Ternus, who became chief executive on 1 September, pushes to streamline Apple’s operations and reduce management layers. Some divisions have already hired external consultants to assess their efficiency and organisational structures, Bloomberg reported.
Apple’s overall expenditure has continued to rise despite the internal restrictions. The company reported a 32 per cent increase in research and development expenses during its 2026 financial year, driven by higher infrastructure and AI costs.
Companywide operating expenses rose 22 per cent to $75.5 billion, equivalent to 16 per cent of total net sales. The actual savings from the employee allowance reductions remain unclear, particularly if many staff were already spending below their previous limits.
Apple is not alone in tightening controls over AI expenditure. Microsoft has restricted internal AI spending, while Tesla introduced a $200 weekly employee allowance and Uber capped spending on individual AI coding tools at $1,500 per month. Meta has introduced token budgets and encouraged employees to use internally developed AI systems.
