Apollo: Artificial Intelligence Has Not Delivered Returns Outside the Technology Sector

In a published note, Torsten Slok, Chief Economist at Apollo Global Management, stated that despite heavy corporate investments in artificial intelligence, zero financial returns have been achieved in areas outside the technology sector.

According to a note written by Torsten Slok, Chief Economist at Apollo Global Management, despite massive investments and immense interest in artificial intelligence, American companies outside the technology sector have not yet received any financial payback. Slok noted that revenue per employee has remained flat for the S&P 493 companies, which exclude the Magnificent 7—namely Amazon, Apple, Google, Meta, Microsoft, Nvidia, and Tesla.

The note stated that traditional American companies have started viewing artificial intelligence expenditures as cost centers rather than sources of growth, leading them to step back as this situation exerts pressure on profit margins. According to a Bloomberg News report, investors are closely monitoring artificial intelligence spending and the success of companies capable of seeing returns on these expenditures as the earnings season begins.