Microsoft and Uber reveal that AI tools, initially expected to reduce expenses, are proving more costly than human labor due to operational challenges.

Companies are racing to incentivize employees to use AI. But as some companies are finding, the more employees that use the technology, the heavier the bill.

Microsoft cancels internal Claude Code licenses due to cost overruns, Uber exhausted its $3.4B AI budget in four months, and GitHub shifts to usage-based billing.