AI promised cost savings, but Microsoft and Uber say it’s costing more than human workers

Microsoft has reportedly begun cancelling the majority of its direct Claude Code licences and redirecting its engineering workforce towards GitHub Copilot CLI instead. The reversal comes only six months after the technology giant opened access to Claude Code across thousands of its developers, project managers, designers and other staff, encouraging broad experimentation with AI-assisted coding.

Adoption was swift and enthusiastic.