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AI Spending Now Represents a Labor Cost

Companies are imposing spending caps on AI, impacting engineering budgets.

In recent months, there has been a noticeable shift as companies reassess their AI expenditures. Last year, engineers were encouraged to maximize AI usage, but this year, some firms have started to impose spending caps. For instance, Uber exhausted its AI coding budget in just four months and has now limited engineers to $1,500 per month.