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AI delivers ‘zero financial payoff’ to most companies, Apollo economist says
TechCrunch • • general
Key Points:
- According to Apollo Global Management's chief economist Torsten Slok, AI has not improved profit margins or productivity for major corporations outside the tech industry.
- Slok's analysis of the S&P 493 (S&P 500 excluding major tech firms) shows flat revenue per worker and no financial gains attributable to AI investments.
- Despite significant hype and spending on AI, non-tech companies have seen no measurable bottom-line benefits from the technology.
- Slok argues that AI's strengths as a computational tool do not translate into business judgment, which involves complex factors like accountability, culture, and ethical considerations.
- He remains skeptical that corporate America outside tech can leverage AI to achieve higher revenue growth or profit margins in the near future.
