Artificial Intelligence Reported to Provide No Returns Outside the Technology Sector

According to analyses shared by Apollo Chief Economist Torsten Slok, despite intense investments and widespread interest in artificial intelligence technology, mainstream US companies outside the technology sector have not yet achieved a financial return.

While revenue per employee and profit margins are increasing in the major technology companies known as the Mag 7, these rates remain flat in the S&P 493 companies. While no significant impact on productivity growth has been observed yet, mainstream companies have begun to evaluate these expenditures as a cost item rather than a source of growth. While venture capital-backed companies increase their AI spending, traditional firms that do not want to pay for models that do not offer clear business value are taking a step back in their expenditures. Torsten Slok stated that the effectiveness of artificial intelligence in the business world remains limited due to shortcomings regarding responsibility, trust, culture, and ethical balances, which are critical for increasing revenues and margins.