AI Fails to Boost Bottom Line for Non-Tech Corporations
AI-generated image · US National Wire
An analysis from Apollo Global Management suggests massive AI investments have yet to translate into productivity gains or revenue growth for the broader S&P 500.
While artificial intelligence continues to dominate corporate investment strategies, the technology has failed to deliver a financial payoff for the majority of American companies outside the tech sector, according to reporting from TechCrunch.
Torsten Slok, the chief economist at private equity firm Apollo Global Management, analyzed the "S&P 493"—a grouping of the S&P 500 that excludes tech giants such as Nvidia, Tesla, Microsoft, Meta, Apple, Amazon, and Alphabet. Slok found that revenue per worker and profit margins for these companies remain flat, indicating that AI has not yet improved productivity for the general corporate landscape.
Slok expressed skepticism regarding the ability of non-tech firms to convert "increasingly cheap intelligence" into higher profit margins or revenue growth. He argued that while AI functions as an effective calculator, business success relies on judgment. According to Slok, AI lacks an understanding of culture, trust, accountability, fairness, unwritten rules, and ethical trade-offs—factors he claims are essential for managing reputational risk and driving financial growth.