Apollo Economist Finds No AI Profit Boost for Corporate America Outside Big Tech
aiinsider ·
A recent analysis by Torsten Slok, chief economist at Apollo Global Management, indicates that artificial intelligence has not yet improved the financial bottom lines of major U.S. corporations outside the technology sector. Slok examined the S&P 493 index, which excludes seven major tech giants, and found that profit margins and revenue per worker have remained flat without evidence of productivity gains from AI adoption. Despite significant investment and widespread industry hype, non-tech companies have seen no measurable financial payoff from these technologies. Slok expressed doubt that corporate America can easily convert cheaper intelligence into stronger revenue growth or higher margins. He argued that business success relies heavily on judgment rather than just calculation, noting that AI lacks understanding of accountability, trust, culture, and ethical trade-offs. These factors are crucial for managing reputational risk and driving profitability, areas where current AI models fall short. The findings align with other recent studies suggesting that AI has failed to deliver significant productivity improvements across the broader economy.
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