NEWS · MONEY · #2536
Apollo economist says AI has delivered ‘zero financial payoff’ to non-tech S&P 493 companies
Apollo Global Management chief economist Torsten Slok published a note arguing that among the S&P 493 (the S&P 500 excluding Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla) profit margins and revenue per worker remain flat, with no evidence that AI is improving productivity or driving higher revenue and margins for non-tech firms.
KEY POINTS
- Apollo Global Management chief economist Torsten Slok published a note arguing that among the S&P 493 (the S&P 500 excluding Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla) profit margins and revenue per worker remain flat, with no evidence that AI is improving productivity or driving higher revenue and margins for non-tech firms.
- This matters because it challenges expectations that widespread AI investment will quickly boost productivity and profits across corporate America, affecting investor decisions and corporate strategy.
- AI delivers ‘zero financial payoff’ to most companies, according to Apollo economist
WHY IT MATTERS
This matters because it challenges expectations that widespread AI investment will quickly boost productivity and profits across corporate America, affecting investor decisions and corporate strategy.