Torsten Slok, chief economist at Apollo Global Management, reports that artificial intelligence has not yet improved the financial performance of major corporations outside the technology sector. His analysis focuses on the S&P 493, which excludes seven major tech firms: Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla.
The research indicates that profit margins and revenue per worker for these companies remain flat. Slok notes that despite significant investments in AI, there is no measurable evidence of increased productivity. He suggests that businesses face challenges in converting affordable intelligence into actual revenue growth or improved margins.
Slok argues that business success relies heavily on judgment, trust, and accountability, qualities that AI lacks. He emphasizes that factors such as corporate culture and ethical decision-making are critical for driving financial results, and AI does not currently possess the capacity to navigate these complex areas.
