Andrew Macdonald said it's getting harder to justify money spent on AI.
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A top Uber exec said AI is not giving the company bang for its buck. In a Rapid Response interview released on Saturday, Uber's operations chief, Andrew Macdonald, said it was becoming harder to justify AI costs within the company.He said that Uber CTO Praveen Neppalli Naga went viral after telling The Information in an April interview that Uber had already blown through its Claude Code budget for 2026. The comment led to what he described as a "head-exploding moment," sparking discussions about AI token consumption within the company and the trade-offs it creates, such as on head count.He said that, based on talks with Uber's senior engineering leaders, he realized higher token usage did not translate into a proportional increase in useful consumer features."That link is not there yet, right?" he said. "I think maybe implicitly there is more that is getting shipped, but it's very hard to draw a line between one of those stats and, 'Okay, now we're actually producing 25% more useful consumer features.'"He said that the trade-off costs from AI are harder to justify because he can't draw a direct link. Earlier this month, CEO Dara Khosrowshahi said in an earnings call that Uber was slowing hiring to counter its investments in AI.
