Apollo Global Management chief economist Torsten Slok released a report analyzing the impact of artificial intelligence on US corporate performance. The study focuses on the S&P 493 index, which excludes the seven major technology companies: Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla.
Data indicates that for these 493 companies, profit margins and revenue per employee remain largely unchanged. Slok notes that despite significant investment and widespread promotion of AI, there is no evidence that the technology has improved productivity or generated tangible financial returns for businesses outside the tech sector.
Slok expresses skepticism regarding whether non-tech firms will eventually see benefits as AI adoption matures. He argues that ordinary companies struggle to convert cheaper computing power into higher revenue growth or improved profit margins.
The economist emphasizes that business success relies heavily on judgment, trust, corporate culture, and ethical decision-making. He suggests that AI lacks the capacity to understand these factors, which ultimately dictate reputation risks and financial performance.
