What changed
Apollo Global Management's chief economist, Torsten Slok, stated in a recent note that AI has delivered 'zero financial payoff' to most companies, with no evidence of improved productivity for non-tech corporations. Slok focused on the S&P 493, which excludes major tech firms like Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla, and found that profit margins and revenue per worker remain flat.
What this means in practice
Slok argues that despite significant investments and hype around AI, corporate America outside of tech has not seen any financial benefits. He suggests that non-tech companies struggle to convert cheap AI intelligence into higher revenue growth or profit margins. Slok emphasized that AI lacks understanding of judgment, accountability, trust, culture, and ethical trade-offs, which are crucial for shaping reputational risk and driving financial outcomes.
Limitations and availability
The supplied announcement does not specify the exact methodology or data sources used in Slok's analysis. It also does not provide details on the timeframe or specific industries studied beyond the S&P 493. Recent studies referenced in the article also indicate that AI has yet to deliver significant productivity gains, though the specifics of these studies are not detailed in the snapshot.
