Apollo Economist Says AI Delivers Zero Financial Payoff to Non-Tech Corporations
Apollo Global Management’s chief economist Torsten Slok reports AI has not improved profit margins for non-tech companies.
In Brief
- •Apollo Global Management’s chief economist Torsten Slok reports AI has not improved profit margins for non-tech companies.
- •Analysis focuses on S&P 493, the S&P 500 minus major tech firms, showing flat revenue per worker.
- •Slok argues AI lacks judgment, accountability, and cultural understanding needed for business growth.
- •Recent studies confirm AI has yet to deliver significant productivity gains outside tech.
Why It Matters
Apollo Global Management’s assessment suggests that despite widespread investment, artificial intelligence has not translated into measurable financial benefits for the majority of large corporations outside the technology sector. This finding highlights a potential gap between AI hype and real-world business outcomes, underscoring the need for non-tech firms to critically evaluate how AI tools can be integrated to genuinely enhance productivity and profitability. If AI continues to fall short in delivering tangible returns for non-tech companies, it could influence investment decisions, shift corporate strategies, and shape future research priorities in AI development, particularly around areas that address judgment, accountability, and cultural nuances essential for business success.
Key Details
- Sector Focus
- S&P 493 (S&P 500 minus major tech firms)
- Profit Margin Trend
- Flat
- Revenue per Worker Trend
- Flat
- AI Impact on Corporate Bottom Line
- Zero financial payoff outside tech
- Key Insight
- AI lacks judgment, accountability, and cultural understanding needed for business growth
Context & Background
Apollo Global Management, a private equity firm that previously owned TechCrunch, released the analysis.
Original Reporting & Sources
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