ai hasn't boosted profits outside tech
apollo economist finds ai delivers zero financial payoff to most companies outside tech industry. this signals challenges for businesses seeking ai-driven growth.
apollo global management's chief economist torsten slok published a note analyzing the sp 493, which consists of the sp 500 minus major tech companies. he found that profit margins and revenue per worker appear to be flat, with no evidence that ai is improving productivity. slok argues that while ai may be a great calculator, it lacks the judgment, accountability, trust, culture, and ethical trade-offs that drive revenue growth and profit margins. recent studies have also found that ai has yet to deliver significant productivity gains. this suggests that businesses may face challenges in turning ai investments into revenue growth.