Apollo economist says AI shows no payoff outside big tech
Original title: AI delivers ‘zero financial payoff’ to most companies, Apollo economist says
Torsten Slok finds flat margins and revenue per worker in the S&P 500 once seven tech firms are removed.
Apollo Global Management chief economist Torsten Slok says AI has not improved the bottom line of large companies outside tech. He looks at the S&P 493, the S&P 500 minus Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla, and reports flat profit margins and revenue per worker. He argues cheap intelligence will be hard to turn into higher revenue and margins because business outcomes depend on judgment, accountability and trust. The note cites other recent studies that also find no significant productivity gains.
Unconfirmed: The zero-payoff conclusion is Slok's reading of margins and revenue per worker, not a company-reported result.
- Slok calls the group excluding seven tech names the S&P 493.
- He says margins and revenue per worker look flat outside tech.
- He doubts non-tech firms are merely lagging the tech giants.
- He says AI does not grasp accountability, trust or ethical trade-offs.
From the original article
1 min read at techcrunch.com
"Despite massive investments and widespread hype around artificial intelligence, the technology has delivered zero financial payoff to corporate America outside of tech."
By Anthony Ha · techcrunch.com
A short excerpt; the article and its images belong to the publisher. Summary, key facts and assessment above are AI-written from the article and can be wrong.