The headline says it all: “Uber president says AI spending is getting ‘harder to justify.’”

Jess Weatherbed, writing in The Verge:

After reportedly exhausting its annual AI budget just four months into 2026, Uber is now questioning whether it’s actually seeing meaningful returns on its investments. In an interview with Rapid Response, Uber president and chief operating officer Andrew Macdonald said the company isn’t seeing a connection between rising token consumption for Claude Code and more useful features being delivered to consumers.

“That link is not there yet, right? 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 percent more useful consumer features,’” said Macdonald. “I think over the coming quarters and years, maybe that will become clearer, but I think today it’s hard, even if some of the underlying metrics are trending in a really astronomical direction.”

Two quick thoughts. First, engineering—and by extension, product and design—velocity gains like 2x, 3x, or 10x show up in the output. They aren’t showing up directly in the outcomes. Getting to a design faster doesn’t mean you designed the right thing.

Second, we haven’t redesigned the factory floor yet. It’s a metaphor I’m borrowing from Tommy Geoco. When factories converted from steam power to electricity in the 1880s, they swapped out the engines and did nothing else. The floor plan and workflow didn’t change. For three decades, output barely moved. Only when companies redesigned their factories and process around the new technology did they see an increase in output.

We haven’t quite figured this out as an industry or discipline yet. As I’ve written previously, it’s foggy but the shape is unmistakable. The answer is out there.