However, as much as it encourages customers to enjoy the benefits of AI, Apple has apparently soured on its own employees’ overuse of the technology. In a new report, Bloomberg claims that the company has begun “reducing employee budgets for the use of artificial intelligence as part of a cost-cutting effort.”
Citing anonymous people with knowledge of the change, leaker Mark Gurman says Apple last month lowered the daily AI spending limit for some engineers from $300 to $200, and is planning to make further cuts that could see the limits drop as low as $100. “Many non-engineering groups already face a daily limit of $100, but Apple has considered reducing that limit to as little as $25 for some teams,” Gurman adds. Staff who believe these limits will impede their ability to do their jobs may apply for an exemption.
Spending limits relate to tokens used by AI providers to track the volume and nature of usage and set fees. Complex, data-intensive tasks, such as code debugging, may cost more tokens than lighter usage typical among consumers.
Therefore, some Apple employees will have to be more conservative in the data processing demands they place on AI. But others, apparently, will not need to change anything in their approach. Gurman’s sources claim that “few workers were using their full $300 daily allowances, making the previous limits unnecessarily generous,” suggesting that any savings gained through the measure will be small.
Aside from those public comments praising the usefulness of AI, this is a surprising stance from a company that in its most recent financial statement announced its “best fiscal year ever.” But Apple has long been a company obsessed with detecting and eliminating unnecessary costs, and Cook (who had a background in operations) was famous for his ability to optimize a supply chain.
Last month’s initial AI spending cut, while it occurred under Ternus, may have been a decision made, or at least floated, while Cook was still in charge. But the plan for deeper cuts shows that Ternus is as interested as his predecessor in running an efficient company.
