Artificial intelligence has yet to improve the bottom line of major corporations outside the technology sector, according to a note from Torsten Slok, chief economist at private equity firm Apollo Global Management.
Slok examined what he calls the S&P 493, the S&P 500 excluding Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla. He found that profit margins and revenue per worker have remained flat, with no evidence that AI is lifting productivity. He concluded that despite heavy investment and widespread hype, AI has delivered no financial payoff to non-tech companies in the U.S.
Asked whether non-tech firms are simply trailing the tech giants, Slok expressed doubt, arguing it will be difficult for corporate America to convert increasingly cheap intelligence into stronger revenue growth and higher margins. He said that while AI may function as a powerful calculator, business intelligence depends largely on judgment.
Slok added that AI lacks an understanding of accountability, trust, culture, unwritten rules, ethical trade-offs and fairness, factors he said shape reputational risk and ultimately drive revenue and profitability.
His findings echo recent studies indicating that AI has so far failed to deliver significant productivity gains across the wider economy.
