AI Has Yet to Boost Profits for Most Companies, Economist Says
Artificial intelligence has delivered "zero financial payoff to corporate America outside of tech," says Torsten Slok, chief economist at Apollo Global Management. In a blog post published over the weekend, Slok explains that despite the hype and money dumped into AI, the technology hasn't increased revenue, profit, or productivity for most US companies.
Slok compares the "Magnificent 7," or "Mag 7," technology companies—Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla—with the remaining 493 companies in the S&P 500. While revenue per worker and overall profit margins have risen among the largest technology firms, they've failed to increase across the S&P 493, which includes banks, major retailers, manufacturers, insurers, and healthcare companies. He also cites US productivity data and notes no obvious signs that AI has improved actual productivity throughout the economy.
Most AI spending comes from a small group of companies. According to Apollo, the top 10% of businesses make...
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