Apollo Economist: Non-Tech Companies Aren't Making Real Profits From AI Yet

Apollo Global Management's chief economist Torsten Slok says no big company outside the tech industry has made real profits from AI yet. He studied the "S&P 493" — the S&P 500 minus seven tech giants like Apple and Microsoft.

The data shows their profit margins and revenue per employee are basically flat. There is no proof AI has made them more productive. Despite the huge spending and hype, AI has not brought financial returns to US companies outside tech.

He doubts it is just a slow rollout. Regular companies cannot turn cheap computing power into higher revenue and margins. AI may be a powerful calculator, but business needs judgment. AI does not understand trust, culture, or ethics.

Several recent studies reached similar conclusions: AI has not delivered big productivity gains so far.