AI delivers ‘zero financial payoff’ to most companies, Apollo economist says
News Source
•Sun, 25 Oct 2026 16:57:32 +0000
📰 What Happened
AI has not lifted profits for most big companies outside the tech industry. That is the finding in a new note from Torsten Slok, chief economist at Apollo Global Management. He looked at the S&P 500 without its seven biggest tech names. Profit margins and revenue per worker stayed flat, with no clear sign that AI is raising productivity. He said the technology has delivered 'zero financial payoff' so far.
🔍 The Backstory
Companies have spent huge sums on AI tools, chips and data centres. Mr Slok doubts the rest of corporate America can turn cheaper computing into faster growth. He wrote that AI may be a great calculator, but business needs judgment. He said AI does not understand trust, culture, unwritten rules or fairness. Other recent studies also found little productivity gain from AI so far.
🎯 Why It Matters
If AI is not making most firms more productive, the promised cheaper goods and faster growth may take longer to arrive.
AI has not lifted profits for most big companies outside the tech industry. That is the finding in a new note from Torsten Slok, chief economist at Apollo Global Management. He looked at the S&P 500 without its seven biggest tech names. Profit margins and revenue per worker stayed flat, with no clear sign that AI is raising productivity. He said the technology has delivered 'zero financial payoff' so far.
Companies have spent huge sums on AI tools, chips and data centres. Mr Slok doubts the rest of corporate America can turn cheaper computing into faster growth. He wrote that AI may be a great calculator, but business needs judgment. He said AI does not understand trust, culture, unwritten rules or fairness. Other recent studies also found little productivity gain from AI so far.
If AI is not making most firms more productive, the promised cheaper goods and faster growth may take longer to arrive.