Apple is reducing internal artificial intelligence (AI) spending allowances for employees even as it encourages greater use of the technology across its operations.
Bloomberg reported on 4 November 2026 that some engineers have already seen their daily AI budgets fall from $300 (£222.38) to $200 (£148.26), with further reductions to $100 (£74.13) being considered for selected teams.
The reported restrictions highlight a growing tension inside the technology giant. Apple wants employees to incorporate AI into their everyday work, but the cost of running increasingly sophisticated models is prompting the company to take a closer look at how much workers can spend.
Apple AI Budget Cuts Could Bring Daily Limits Down to $25
Some Apple engineers saw their daily AI spending allowances reduced in October, with the limit falling from $300 (£222.38) to $200 (£148.26).
The company is now considering another reduction to $100 (£74.13) for certain engineering teams, potentially leaving employees with considerably less room to experiment with different models.
The proposed restrictions could be even tighter outside engineering. Some departments already operate with daily allowances of $100 (£74.13), but Apple is considering bringing that figure down to just $25 (£18.53) for selected teams.
Employees relying on third-party AI use to perform work at Apple will need to cut back as funding has been reduced by as much as a third for some.#Apple #AI
— AppleInsider (@appleinsider) November 4, 2026
https://t.co/OV4NVcnl5N
The changes do not amount to a ban on AI. Employees who need more spending capacity can request an exemption from senior leadership, although Apple has not disclosed how these requests will be assessed.
The budgets are based on token usage, which rises with more complex tasks and expensive AI models. This can make costs harder to control for software engineers who use AI to write, review and debug code.
Apple employees have access to several AI services, including Anthropic's Claude, OpenAI's ChatGPT and Google's Gemini.
Some teams are also being encouraged to use less expensive models or systems that run locally on their devices, reducing their reliance on more costly cloud-based services.
Mixed Employee Reactions Raise Questions About Apple's AI Cost-Cutting Push
The spending restrictions have reportedly received mixed reactions inside Apple. Some employees believe the previous $300 (£222.38) daily allowance was unnecessarily generous, arguing that relatively few workers were using their entire budgets.
Others are less comfortable with the reductions. Bloomberg's reporting indicates that the changes have contributed to concerns among some employees about possible layoffs and restructuring as Apple examines how efficiently its divisions operate.
The company has also brought in external consultants to review aspects of its business, adding to questions about whether tighter AI budgets are part of a broader effort to reduce operating costs.
However, the reported employee concerns should not be mistaken for confirmation that Apple has announced another round of redundancies.
NEW: Apple is cutting employee AI spending budgets even as it pushes workers to use the technology more. Engineers have seen daily limits cut from $300 to $200, with further reductions to $100 planned. Other teams could see limits fall to $25. https://t.co/4tnOIaxpDz
— Mark Gurman (@markgurman) November 4, 2026
Chief Executive Officer John Ternus has been pushing for a faster and more efficient organisation with fewer management layers. The direction places additional emphasis on productivity and spending discipline as Apple attempts to keep pace with competitors investing heavily in AI.
Apple's research and development expenses rose 32% in its 2026 financial year, driven mainly by higher infrastructure costs, including AI investments, and increased staffing expenses.
Operating expenses also climbed 22% to $75.5 billion (£55.97 billion). However, tighter AI budgets may not generate substantial savings, as Bloomberg reported that some employees were not using their full daily allowances.
A $300 (£222.38) limit does not mean an employee spends that much, so cutting it to $100 (£74.13) will not necessarily reduce actual costs by the same amount.
For employees who regularly use AI for demanding engineering work, the tighter restrictions could mean switching to cheaper models, adjusting their workflows or seeking approval for additional spending.
Apple has not publicly disclosed how many workers will be affected or confirmed the final limits for the teams facing further reductions.
