Torsten Slok, chief economist at Apollo Global Management, states that artificial intelligence has not enhanced the bottom line of any major firms outside the technology sector, according to a recent note.
He examines the so-called S&P 493 - the S&P 500 excluding Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla - and observes that profit margins and revenue per employee remain unchanged, offering no sign that AI is lifting productivity.
"Despite massive investments and widespread hype around artificial intelligence, the technology has delivered zero financial payoff to corporate America outside of tech," Slok said.
Questioning whether non-tech firms are simply lagging, he expressed doubt that corporate America can easily convert ever-cheaper intelligence into stronger revenue growth and higher margins.
"AI may be a great calculator, but in business, intelligence is mostly judgment," he wrote, adding that "AI does not understand accountability, trust, culture, unwritten rules, ethical trade-offs or fairness, all of which shape reputational risk and ultimately drive revenue growth and profit margins."
Other recent research also indicates that AI has yet to produce notable productivity improvements.
