AI delivers zero financial payoff to most companies: Apollo
Apollo Global Management chief economist Torsten Slok reveals AI has brought zero financial payoff and flat productivity to S&P 493 companies outside Big Tech.
Stock photo for illustration only, not from the actual event
- Apollo Global Management reports AI has not boosted profits for most corporations.
- The S&P 493 outside Big Tech shows flat profit margins and revenue per worker.
- Torsten Slok notes AI lacks understanding of trust, culture, and accountability.
The massive wave of excitement surrounding artificial intelligence may not be translating into real financial gains for mainstream corporations as widely expected. A recent publication by Torsten Slok, chief economist at private equity giant Apollo Global Management, highlights that the technology has failed to yield meaningful profits for major corporations operating outside the technology sector.
Slok's analysis centers on what he terms the S&P 493—representing the S&P 500 excluding seven major tech giants: Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla. Data indicates that profit margins and revenue per worker across these firms remain flat, showing no concrete evidence that AI adoption is enhancing overall productivity.
"Despite massive investments and widespread hype around artificial intelligence, the technology has delivered zero financial payoff to corporate America outside of tech"
Torsten Slok
Slok expressed skepticism regarding the notion that non-tech firms are merely lagging behind industry leaders, arguing that it remains a formidable challenge for corporate America to convert increasingly affordable intelligence into higher revenue growth and expanded profit margins.
From an economic standpoint, the lack of immediate financial payoff from AI highlights the fundamental gap between raw computational power and complex business judgment. While AI excels at processing data and calculation, automated systems cannot replicate human accountability, strategic intuition, and contextual decision-making, which explains why massive upfront investments have yet to favorably impact the bottom line.
Stock photo for illustration only, not from the actual event
Furthermore, Slok emphasized that while artificial intelligence functions brilliantly as a calculator, business intelligence fundamentally relies on judgment. He noted that AI does not comprehend accountability, trust, culture, unwritten rules, ethical trade-offs, or fairness—elements that ultimately shape reputational risk and drive revenue growth. This aligns with recent independent studies indicating that AI has yet to deliver significant productivity gains.
Source: TechCrunch
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