Apollo says AI has delivered 'zero financial payoff' outside the tech industry
Only tech companies are seeing growth from the AI boom, Apollo Global Management said.
Leading global investment firm Apollo Global Management asserts that artificial intelligence has not yielded any financial gains outside the technology sector. In a recent economic analysis, Apollo's chief economist Torsten Slok stated that while tech giants like Nvidia and Meta are experiencing revenue growth due to AI, this progress is not being mirrored in other industries.
Slok explains that mainstream corporate America is beginning to view AI spending as a cost rather than a growth driver. According to three key metrics, tech companies have been significantly outperforming others since 2022. Revenue per worker has surged for tech firms from $550,000 to nearly $800,000, while profit margins for non-tech companies have remained stagnant around 10%. Moreover, AI's impact on productivity growth has not been as profound as previously anticipated.
The report raises concerns about the future of the U.S. economy, which has poured substantial funds into AI tools and companies, with leaders promising an era of abundance where people wouldn't need to work as much. The real question now is whether mainstream corporate America can transform cheap AI intelligence into higher revenue and profit margins. Slok believes this may prove more challenging than initially thought.
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