AI Yields Little Financial Benefit for Most Companies, According to Apollo Economist

A recent analysis from Apollo Global Management‘s chief economist reveals that artificial intelligence has yet to generate significant financial benefits for major corporations outside the technology sector.

In his evaluation, economist Torsten Slok examined what he refers to as the S&P 493, which excludes tech giants such as Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla. His findings indicate that profit margins and revenue per employee in these non-tech companies remain largely unchanged, with little indication that AI is enhancing productivity.

“Despite substantial investments and the pervasive excitement surrounding artificial intelligence, this technology has provided no financial returns for corporate America, apart from the tech sector,” Slok stated.

When asked whether non-tech companies are simply trailing their tech counterparts, Slok expressed skepticism. He posited that it may be challenging for corporate America to effectively translate “inexpensive intelligence into increased revenue and improved profit margins.”

“While AI may excel in calculations, true business intelligence relies heavily on judgment,” he noted. In a further commentary, Slok indicated that AI lacks comprehension of accountability, trust, culture, informal norms, ethical dilemmas, or fairness—elements that significantly influence reputational risk and, ultimately, revenue and profitability.

Other studies have similarly highlighted that AI has not yet delivered considerable productivity enhancements across different industries.