Uber CEO says the company is slowing hiring as it invests in AI

Uber is making a strategic shift towards artificial intelligence, leading to a slowdown in new hiring. During the first-quarter earnings call, CEO Dara Khosrowshahi revealed that autonomous agents are responsible for about 10% of the company's code modifications. Despite this, human oversight remains crucial, as employees review the code before it is finalized in the repository. The CEO highlighted the significant productivity enhancements that AI can deliver, noting that the company has employed AI for optimizing ridesharing pricing and connecting drivers with passengers for several years. Recently, various teams within Uber, including legal and marketing, have started utilizing AI tools to boost their efficiency. Khosrowshahi expressed optimism about this trend, stating, "We think it's creating kind of employees with superpowers." To support its commitment to AI, Uber is reallocating resources, resulting in fewer new hires. The company's financial report for the first quarter showcased impressive figures, with revenue reaching $13.2 billion and gross bookings rising by 25%. Looking ahead, Uber anticipates a notable increase in earnings per share for the second quarter, projected to grow between 31% and 38%. Early trading on the stock market reflected positive investor sentiment, with shares rising approximately 6%. CFO Balaji Krishnamurthy noted that Uber has significantly increased its spending on AI, admitting that the initial budget projections underestimated the potential impact of these tools. The company's CTO, Praveen Neppalli Naga, mentioned that Uber has already exhausted its 2026 budget for Claude Code, indicating a strong commitment to AI development. Khosrowshahi emphasized that if AI can enhance employee productivity by substantial margins, then the company's strategy to prioritize AI investments while moderating headcount growth will be beneficial in the long run. He stated, "If every person at this company can increase their throughput by 20%, 30%, 50%, 100%, then I think metering headcount growth and leaning in on AI investment is going to be well worth it."