AI delivers ‘zero financial payoff’ to most companies, according to Apollo economist
techcrunch ·
A recent analysis by Torsten Slok, chief economist at Apollo Global Management, indicates that artificial intelligence has provided no financial benefits to most major corporations outside the technology sector. Slok examined the S&P 493 index, which excludes seven leading tech giants, and found that profit margins and revenue per worker have remained flat despite widespread hype and massive investments in AI. He argues that non-tech companies struggle to convert increasingly cheap computational intelligence into tangible revenue growth or improved profit margins. According to Slok, business success relies heavily on human judgment rather than raw calculation, as AI lacks understanding of accountability, trust, corporate culture, and ethical trade-offs. These intangible factors are crucial for managing reputational risk and driving long-term financial performance. The report suggests that while AI may be an effective tool for data processing, it does not currently enhance the strategic decision-making required for broader economic gains. This perspective aligns with other recent studies indicating a lack of significant productivity improvements across the general corporate landscape.
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