AI delivering no financial gains for most major companies

Summarised from 2 outlets · Updated 26 Oct, 15:57 · Archive

Artificial intelligence has delivered zero financial benefit to large corporations outside the technology sector, according to Apollo Global Management's chief economist.

Torsten Slok, chief economist at Apollo Global Management, has published a note warning that artificial intelligence has delivered zero financial benefits to large corporations outside the technology sector. He analysed what he calls the S&P 493, the S&P 500 index excluding Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla—the major technology giants that have seen gains from AI investment.

Slok found that profit margins and revenue per worker appear flat across the S&P 493, with no evidence that AI is improving productivity. Both TechCrunch and TechRadar report his findings. He argued that whilst these large technology firms are seeing revenue per worker rise, the broader corporate sector is not experiencing similar benefits despite massive investments and widespread hype surrounding the technology.

Slok suggested that the lack of financial payoff reflects fundamental limitations in how AI can serve business needs. "AI may be a great calculator, but in business, intelligence is mostly judgment," he wrote, noting that AI does not understand accountability, trust, culture, unwritten rules or ethical considerations—factors that shape reputational risk and drive revenue growth.

TechRadar reports that mainstream corporate America is pulling back on AI spending, increasingly viewing token spending as a cost centre that weighs on margins rather than a source of growth. Slok warned that as long as AI investment remains confined to a small part of the economy, the macroeconomic effects will be very limited.

How it is being reported

• Top economist warns AI is giving ‘zero financial payoff’ to many firms - and warns 'mainstream corporate America is pulling back' on AI spendingAI is only helping tech firms see results or success - how long can this last?TechRadar · 26 Oct, 15:35
• AI delivers ‘zero financial payoff’ to most companies, according to Apollo economist"Despite massive investments and widespread hype around artificial intelligence, the technology has delivered zero financial payoff to corporate America outside of tech."TechCrunch · 25 Oct, 16:57

In this story: Torsten Slok · Apollo Global Management · S&P 500

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