Apollo Economist: AI Delivers Zero Financial Payoff to Most Companies

Artificial intelligence has failed to benefit the bottom line of major corporations outside of the technology sector, according to a report by the chief economist at Apollo Global Management.

• AI has not improved profits for companies outside tech giants
• Analysis of S&P 493 shows flat profit margins and worker revenue
• Business success relies on judgment rather than mere calculation

The S&P 493 Market Analysis

Torsten Slok focused his research on the S&P 493 — the S&P 500 excluding the top seven tech giants: Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla. The evaluation reveals that profit margins and revenue per worker remain flat with no clear productivity boost.

Despite massive ongoing investments and widespread hype surrounding artificial intelligence, the technology has delivered virtually zero financial payoff to corporate America outside the tech industry.

Why AI Struggles Outside Tech

Slok remains skeptical that non-tech companies are simply lagging behind, arguing it will prove difficult to turn increasingly cheap intelligence into higher revenue growth and profit margins.

He notes that while AI can act as a great calculator, business intelligence mostly relies on human judgment. AI does not comprehend accountability, trust, culture, ethical trade-offs, or fairness.

Implications for Markets and Businesses

These findings challenge the prevailing market narrative and force investors to reassess the actual financial returns of aggressive AI integration across traditional industries.

Companies are encouraged to focus on fundamental business drivers and risk management rather than relying solely on technological hype for future growth.