According to Apollo Global Management’s chief economist Torsten Slok, artificial intelligence has not delivered measurable financial benefits to corporate America outside the technology sector. Analysis of S&P 493 companies, which excludes tech giants, reveals flat profit margins and stagnant revenue per employee despite significant AI adoption.
- AI shows zero financial payoff for non-tech S&P 493 firms
- Profit margins and worker productivity remain flat despite AI
- AI lacks essential business judgment and accountability traits
What happened
Apollo Global Management’s chief economist, Torsten Slok, examined the financial impact of AI on large US companies outside the tech sector. By isolating the S&P 493 companies, which excludes tech leaders like Apple, Microsoft, and Nvidia, he found no evidence that AI has enhanced profitability or revenue per worker.
Despite billions invested and widespread hype, corporate America’s non-tech firms have not experienced productivity gains attributable to AI. This assessment reflects quantitative financial metrics remaining largely unchanged since AI adoption accelerated.
Why it matters
This finding challenges the prevailing narrative that AI is a universal productivity booster and growth driver. It suggests that AI technologies alone cannot overcome complex business dynamics in industries where human judgment, culture, and ethical considerations are critical.
Slok emphasizes that AI is fundamentally a powerful data processor but lacks the accountability, trust, and nuanced understanding that drive reputational risk management and ultimately impact revenue and profit growth. Companies may need to rethink expectations for AI’s role beyond tech-centric applications.
What to watch next
Industry observers and investors will be closely monitoring whether and how companies outside of the technology sector begin to translate AI capabilities into tangible financial returns over time. Early signs of AI-enabled revenue growth or margin expansion could shift this outlook.
Additionally, research into integrating AI with human judgment and accountability frameworks may become a key focus. Innovations that address AI’s current limitations around ethical trade-offs, culture, and trust could be pivotal in unlocking broader economic benefits.