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After Rippling blew millions on AI in months, it built an employee ROI tool

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HR software provider Rippling this week unveiled AI Spend Console, an anti-tokenmaxxing product that helps a company track and contain its AI spending. One of the most interesting features is that it maps how much individual employees, teams, and roles are spending and if they are genuinely more productive, or generally producing more AI slop.

The company promises the tool will show “which engineers have high AI spend whose peers frequently ask them to redo work in code reviews,” the company says in its blog post.

The tool was born after Rippling went all in on tokenmaxxing at the start of the year — as so many did — only to discover employees were wildly burning cash. Chief Product Officer Matt MacInnis still recalls the executive team meeting in March when CFO Adam Swiecicki presented a number that shocked them.

Rippling was on track to burn 40% of its R&D headcount budget on AI tokens, meaning it was spending as much on tokens as 40% of all the compensation it paid employees in that unit. Millions of dollars. (The R&D org is home to engineering at most tech companies.)

Spending was growing by 80% month-over-month, and if that trend continued, the next year it would spend almost as much on AI tokens — 90% — as it spent on its high-paid R&D unit employees.

“We were incredulous,” MacInnis told TechCrunch.

Management immediately undertook an “urgent” project to understand the spending and what they were getting for that money, he said. In fact, the launch ad for this new product features Swiecicki sitting on a stool while employees are picking up wads of cash and dumping them into a paper shredder.

When Rippling conducted an analysis, it discovered facts like “roughly 10–15% of our employees were driving about 60% of total AI spend. One engineer was spending $50,000 a month,” its blog post shared.

Rippling didn’t want to stop AI usage, just rein it in — a lot. It started by negotiating a max spending cap with each of the tools its company used: Cursor, OpenAI, and Anthropic. It immediately found an obvious issue: Employees defaulted to using the most recent, and most expensive, frontier models for all tasks.

“The truth is that the inference providers, like Anthropic and OpenAI, have absolutely no incentives to help you control your spend. They have every incentive for it to be a runaway expense, and that’s exactly what they do. They don’t provide you with great usage insight, and they don’t collaborate with one another,” MacInnis said.

That was a common early-2026 problem. Now, eight months into the year, enterprises have figured out a couple of things. First, they know they need multiple models from multiple AI labs at various price points, including a frontier open weight option, perhaps of Chinese origin.

Rippling founder and CEO Parker Conrad noted last month that when his company conducted its own benchmarks for its own internal uses, it discovered SpaceX’s Grok was the all-around leader but that “GLM 5.2 is 85% cheaper but [had] nearly identical performance” to the frontier models. (SpaceX now owns Cursor, which offers access to Grok and dozens of other models.) Z.ai’s GLM 5.2 has become a particular favorite Chinese model for coding tasks among tech companies these days. Databricks has also been championing it.

Second, enterprises now know they need an AI gateway that routes prompts to the best, most cost-effective model for the task. Rippling came to that conclusion too. So it built its own AI gateway that is also part of this product. MacInnis says it is possible for enterprises that already use another gateway to still use the AI Spend Console product, though if they want the features that govern spending, they would need to use Rippling’s gateway.

AI Spend Console produces dashboards (once known as leaderboards in the tokenmaxxing days) that score attributes such as prompts per day combined with work output (lines of code/pull requests) and spend.

With this tool in place, Rippling said it dropped its token spend from 40% of its headcount budget to about 15%. But it didn’t curtail AI usage. The company spent a peak of 605 billion tokens the month the CFO issued his warning, MacInnis shared. In July, internal usage hit 600 billion tokens again, yet “the cost of July’s token spend was 37% of the cost of April’s token spend,” he said.

“That’s just because now we’re routing to the more effective models,” he said, joking that “we’re not letting the sales team do grammar updates using Fable.”

But technology solutions aren’t enough, Rippling notes. The company found people using AI effectively and made them “AI captains” tasked with assisting the rest of the company.

Still, such efforts to use AI beyond engineering are a work in progress, MacInnis says, as software engineers have been the primary users so far. But Rippling is, for example, working on it for customer onboarding teams to automate some mailing data and data-reconciliation tasks. The dashboard will then measure productivity in terms of onboarding more customers.

“We have to be able to link token consumption in G&A functions and in customer-facing functions back to productivity. If we can’t do that, all bets are off on any of this stuff being available to the broader employee base,” MacInnis says.

So, if Rippling is an example, tokenmaxxing may have swung so far the other direction that employee AI access may no longer be like Slack or email. If the company can’t measure productivity, then all employees might not have access.

As for the product, AI Spend Console is included for Rippling’s HR subscribers, though there are additional AI usage-based costs. It can also be purchased as a stand-alone product and integrated with another HR system of record, MacInnis says.

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Desmond Elliot kneels before Gbajabiamila, apologises over APC primary fallout

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Lagos State House of Assembly member, Desmond Elliot, has apologised to the Chief of Staff to President Bola Tinubu, Femi Gbajabiamila, over his conduct during the last All Progressives Congress (APC) primary election in Lagos.

Elliot was seen in a video circulating on social media kneeling before Gbajabiamila and asking for forgiveness, while also appealing to be accepted back into the APC fold in Lagos.

“I’m sorry, I have no excuse. I have nothing other than to say I’m deeply sorry, and I am hoping to be cultured in the future,” Elliot said.

His apology followed a disagreement with the party leadership over the APC primary conducted in May to select its candidate for the Surulere Constituency I seat.

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Elliot had withdrawn from the primary, alleging that his supporters were subjected to intimidation and political pressure during the exercise.

He later rejected the outcome of the election and vowed to challenge the process through the party’s appeal mechanism.

The former actor ultimately lost the APC ticket to Barakat Odunuga-Bakare, who was widely believed to have the backing of Gbajabiamila.

Odunuga-Bakare secured 11,385 votes in the primary, defeating Elliot, who polled 270 votes.

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VIDEO: I Travelled Alone as Governor to Cut Costs — Obi

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The presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, has revealed how he reduced the cost of governance while serving as governor of Anambra State.

According to the politician, he deliberately avoided unnecessary spending and travelled without the large entourage usually associated with public officials.

Obi disclosed this on Monday while speaking in Washington, D.C., United States, where he discussed measures he adopted to reduce government expenditure during his tenure as governor.

The former Anambra State governor said he rejected inflated budgets for the renovation of his official facilities, explaining that projects were completed for significantly less than the amounts originally provided for in the budget.

“When I was governor, the budget for refurbishing my office was ₦298 million, but I did everything with ₦48 million. There was also a budget of ₦486 million to refurbish my house, but I completed everything with ₦81 million,” Obi said.

He also spoke about the cost associated with official travels, saying he refused to travel with the number of people that could ordinarily accompany a governor on official trips.

“As a governor, you are supposed to travel with 30 people to several places. Over the years I was governor, I didn’t use 16 percent of my travel allowance because I wasn’t travelling with anybody. I was the only person invited; nobody invited them,” he said.

The NDC candidate has repeatedly argued that Nigeria’s limited resources should be directed towards productive sectors capable of improving the living conditions of citizens.

The former governor recently travelled to Germany and the United Kingdom for a series of engagements focused on issues including democracy, electoral integrity, poverty, education, corruption and healthcare.

Obi disclosed the European trip in a statement on his social media platforms after returning to Abuja from visits to Benue and Plateau states.

“After returning to Abuja on 8th September 2026, following our visits to Benue and Plateau States, I travelled to Europe, first to Germany and then to the United Kingdom,” he stated.

According to Obi, his discussions with international partners centred on practical steps that could contribute to Nigeria’s development, with particular attention to education.

He said he was encouraged by the willingness of international partners to support Nigeria, especially in the education sector.

Obi described education as the most important investment Nigeria could make in its citizens, stressing that sustainable national development would remain difficult without building the knowledge, skills and capabilities of the country’s people.

He also renewed his call for a change in the direction of Nigeria’s economy, urging the country to move away from excessive consumption and dependence.

“We must intentionally transition Nigeria from consumption to production, from dependence to productivity, from wasteful practices to responsible resource management, and from division to a common national purpose,” he said.

The NDC presidential candidate said his broader objective was to build a country where children would have access to quality education, democracy would reflect the wishes of voters, healthcare would be accessible and public resources would be managed responsibly.

He added that every Nigerian should have a fair opportunity to live a dignified and productive life.

Obi’s latest engagements come as political activities intensify ahead of the 2027 general elections, with major presidential contenders increasingly stepping up consultations and engagements within and outside Nigeria.

The presidential candidate of the African Action Congress, Omoyele Sowore, has also travelled to the United States and Canada as part of a North American tour connected to his 2027 campaign.

The AAC said Sowore’s absence from Nigeria would not affect the #Sowore2027 campaign, maintaining that its activities would continue to focus on what it described as revolutionary transformation, equal rights and justice.

President Bola Tinubu has also travelled to Europe, with the Presidency saying the President departed Abuja for a three-week vacation as part of his annual leave.

His Special Adviser on Information and Strategy, Bayo Onanuga, said Tinubu’s first destination was London, United Kingdom, and that he would return to Nigeria at the end of the working vacation.

The political movements are taking place against the backdrop of preparations for the 2027 presidential and National Assembly elections. The Independent National Electoral Commission commenced the official campaign period on August 19, while the elections are scheduled for January 16, 2027.

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