Uber President Questions ROI on AI Spending

Uber's aggressive bet on artificial intelligence is facing scrutiny from its top executives. According to sources, the company has already exhausted its annual AI budget just four months into 2026, sparking concerns over the returns on its investments. In an interview with Rapid Response, Uber president and chief operating officer Andrew Macdonald expressed doubts about the effectiveness of its AI spending.

Macdonald said that the company isn't seeing a clear connection between its increasing token consumption for Claude Code – a key AI tool – and the delivery of more useful features 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,'" he said.

The comments from Macdonald suggest that Uber is struggling to quantify the benefits of its AI investments. The company's AI spending has been significant, but it appears that the expected returns have not yet materialized. As a result, Uber is now questioning whether its AI strategy is yielding the desired outcomes.

Uber's experience highlights the challenges many companies face in measuring the effectiveness of their AI initiatives. Despite the hype surrounding AI, it can be difficult to tie AI investments to tangible business outcomes. Macdonald's comments indicate that Uber is grappling with these same challenges.

The company's AI strategy is likely to remain under close scrutiny as it seeks to justify its investments and deliver returns to stakeholders. For now, Uber's AI spending is getting harder to justify, according to Macdonald. As the company continues to navigate the complexities of AI adoption, it will be closely watched by industry observers and investors alike.

Uber's AI investments are a key part of its strategy to drive growth and innovation. However, the company's experience serves as a reminder that AI is not a silver bullet – and that its benefits must be carefully measured and evaluated.