AI delivers ‘zero financial payoff’ to most companies, Apollo economist says
Apollo economist Torsten Slok finds AI has not benefited the bottom line of most big corporations outside the tech industry, despite massive investments and hype.
Intelligence analysis by Qwen 2.5 (3B)
Apollo economist Torsten Slok argues AI has not delivered financial benefits to most companies outside the tech sector, despite significant investments and hype.
A smart computer can help companies do their work better, but so far, it hasn't made most big companies make more money or have more money left over after paying bills.
Analysis
{"heading":"The S&P 493: A Focus on Non-Tech Companies","subheading":"Slok's Analysis of the S&P 500 minus Tech Giants","content":["Torsten Slok, the chief economist at Apollo Global Management, analyzed the S&P 500, excluding the tech giants Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla. This subset, known as the S&P 493, represents the broader economy.","Slok's findings show that profit margins and revenue per worker have remained flat, with no evidence of AI improving productivity outside the tech sector.","Slok's skepticism stems from the belief that AI is primarily a tool for calculation, lacking the judgment, accountability, and ethical considerations necessary for business success."]}
Key points
- Apollo economist Torsten Slok found AI has not benefited most big companies outside the tech industry.
- Slok's analysis focused on the S&P 493, excluding tech giants.
- Slok argues AI is primarily a tool for calculation, lacking judgment and ethical considerations.
As AI technology improves, companies may find new ways to use AI to improve their bottom line.
Without addressing the limitations of AI, such as judgment and ethical considerations, companies may struggle to fully realize the benefits of AI.
