AI shows no financial lift for US firms beyond big tech, says Apollo economist

AI has failed to boost profit margins or revenue per employee for large U.S. companies outside the core tech sector, Apollo Global Management chief economist Torsten Slok reported. Slok examined what he calls the S&P 493 – the S&P 500 index stripped of Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla. His analysis shows that profit margins and revenue per worker have stayed flat over the period of rising AI spending. He said that despite huge investments and hype, AI has not generated any financial benefit for these firms. Slok doubts that non‑tech firms can turn cheaper AI tools into stronger top‑line growth or higher margins. He warned that AI may excel at number‑crunching but business decisions rely on judgment, accountability, trust, corporate culture, unwritten rules and ethical considerations – factors AI does not grasp. Recent independent studies echo this view, finding no clear productivity jump from AI adoption.

Context

The finding highlights a gap between AI enthusiasm and measurable economic impact in sectors that lack the data and agility of tech giants. Companies may need to focus on integrating AI with human decision‑making rather than expecting it to replace strategic judgment.