Apollo economist says AI has not improved profits for non-tech firms

Artificial intelligence has failed to improve the financial performance of major corporations outside the technology sector, according to a recent note from Apollo Global Management. Torsten Slok, the firm’s chief economist, analysed a subset of the S&P 500 index that excludes seven major technology companies. His research indicates that profit margins and revenue per worker have remained flat, offering no evidence that AI is currently enhancing productivity in these organisations.

Slok stated that despite significant investment and widespread enthusiasm for the technology, it has provided no financial benefit to corporate America beyond the tech industry. He expressed doubt that non-tech firms can easily convert increasingly inexpensive intelligence into higher revenue growth or improved profit margins. The economist argued that business success relies heavily on judgment rather than calculation, noting that AI lacks an understanding of accountability, trust and ethical trade-offs.

These findings align with recent studies suggesting that artificial intelligence has yet to deliver significant productivity gains. Slok emphasised that factors such as culture and unwritten rules shape reputational risk, which ultimately drives revenue and margins. While AI functions as a powerful calculator, it does not possess the human judgment required to navigate complex business environments effectively.