Uber exhausted its entire 2026 AI budget by April despite 95% engineer adoption. Leadership questions whether rising AI spending delivers real consumer value.

Operations chief Andrew Macdonald said he's not seeing proportional productivity gains from increasing AI costs within Uber.

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

Breaking: “Uber COO Andrew Macdonald said he’s not seeing proportional productivity gains from increasing AI costs.”

Microsoft and Uber are reportedly scaling back their usage of Anthropic's Claude Code tool after the costs became too high.