Apollo Global Management Report Finds AI Yields Zero Non-Tech Payoff
Apollo Global Management reports that artificial intelligence has failed to provide financial payoffs for corporate America outside of the technology sector.
An economic analysis from Apollo Global Management concludes that artificial intelligence has delivered "zero financial payoff" to corporate America outside of the technology sector. Chief economist Torsten Slok found that while the "Magnificent Seven" tech companies have experienced significant increases in profit margins and revenue per worker since 2022, these gains have not extended to other industries within the S&P 500.
Slok reports that mainstream companies are increasingly viewing AI spending as a cost center that weighs on margins rather than a source of growth. The research indicates that AI has not yet produced the dramatic productivity growth predicted by optimists.
The report raises questions about whether non-tech corporations can eventually convert increasingly cheap intelligence into higher revenue growth and profit margins, a transition Slok suggests may be harder than it sounds.
