Uber has implemented new restrictions on how employees can utilize artificial intelligence (AI) tools due to exceeding its annual AI budget rapidly. According to a recent Bloomberg report, the company has set a monthly spending limit of $1,500 per employee for each AI coding assistant, which includes tools like Claude Code and Cursor. Employees can track their usage using an internal dashboard, but exceptions for surpassing spending limits can be granted in specific cases.
This decision comes after Uber executives revealed that the entire annual AI budget had been depleted within the first four months of the year. The increased spending was a result of an internal initiative that encouraged employees to extensively utilize AI tools. Earlier reports from The Information suggested that Uber had promoted AI adoption through internal competitions and leaderboards to monitor employee usage.
Concerns about AI’s impact on productivity have also been raised within Uber. Fortune recently reported that Uber’s chief operating officer, Andrew Macdonald, expressed challenges in establishing a direct correlation between AI usage and the creation of new consumer-facing products or features.
