Uber Prioritizes AI and Cuts Hiring for Efficiency

Uber recently announced a slowdown in its hiring, opting to invest heavily in artificial intelligence. CEO Dara Khosrowshahi revealed that the company uses AI agents to generate about 10% of the code produced by Uber. This strategy aims to increase employee productivity by 20% to 100% through AI.

Uber has been using AI for years to price ridesharing trips and match drivers with passengers. Now, employees from various sectors, including the legal team, marketing team, and developers, are using internal AI tools. Khosrowshahi stated that the adoption of these AI tools creates employees with superpowers.

During a first-quarter earnings call, Khosrowshahi explained that while the code generated by AI is reviewed by human employees, the adoption of these technologies allows for significant productivity gains. The company reported revenue of $13.2 billion for the first quarter of 2023, with a 25% increase in gross bookings. Projections for the second quarter indicate an increase in earnings per share between 31% and 38%. Uber's stock rose by 6% before the market opened.

CFO Balaji Krishnamurthy admitted that the impact of AI tools had been underestimated during the budgeting for the end of 2025, leading to an increase in AI spending. Praveen Neppalli Naga, Chief Technology Officer, mentioned that the 2026 budget for Claude Code had already been fully spent.

Khosrowshahi emphasized that if every employee can increase their productivity through AI, the reduction in hiring and the focus on investing in AI will be justified.