Top Economist Finds That AI Has Provided “Zero Financial Payoff” to Companies Outside Tech
"There are still no signs of AI boosting productivity growth." The post Top Economist Finds That AI Has Provided “Zero Financial Payoff” to Companies Outside Tech appeared first on Futurism .
According to Apollo Global Management chief economist Torsten Slok, artificial intelligence (AI) has yet to provide any significant financial benefits for businesses outside the technology sector, resulting in a "zero financial payoff." The revenue per worker has risen for the S&P 500, but remains flat for the Magellan 7, while profit margins for the S&P 500 are also flat.
Slok's analysis suggests that the AI story will ultimately be determined by the S&P 500, not the Magellan 7, with no evidence of improved revenue growth or margins outside the tech sector. The costs of utilizing cutting-edge models have skyrocketed, forcing companies to seek more affordable alternatives, and it remains uncertain whether businesses can truly benefit from highly sophisticated technology that can identify cybersecurity threats or autonomously compromise another party's servers.
Goldman Sachs CEO David Solomon declared that a half-billion dollar AI investment will not be pursued as it offers "very little" in terms of solving business needs. The AI industry's rapid growth, as exemplified by Anthropic's blowout of $80.7 billion in the first half of the year, may heighten apprehensions among business leaders regarding the practicality and return on investment of AI.
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