Uber caps AI tool spending after rapidly depleting annual budget

Uber has introduced new restrictions on its employees' use of artificial intelligence tools, a move prompted by the company quickly exhausting its annual AI budget. The ride-sharing giant has reportedly set a monthly spending cap of $1,500 per employee for AI coding assistants like Claude Code and Cursor.

Employees can track their AI tool usage via an internal dashboard. However, exceeding these spending limits is possible with specific approvals. This policy shift comes after Uber executives revealed earlier this year that the company had already spent its entire annual AI budget within the first four months.

The rapid spending surge was attributed to an internal campaign that encouraged employees to heavily utilize AI tools. Previous reports indicated Uber promoted AI adoption through internal competitions and leaderboards to monitor employee engagement.

Despite the push for AI adoption, questions linger within Uber about its tangible benefits. The company's chief operating officer, Andrew Macdonald, noted that establishing a direct link between AI usage and the development of new consumer-facing products or features remains challenging.