AI delivers 'zero financial payoff' to most companies, Apollo economist says (techcrunch.com)

According to a recent note by Torsten Slok, chief economist at Apollo Global Management, artificial intelligence (AI) has shown no financial benefits for most companies outside the tech sector, as highlighted in his analysis of the S&P 493. Slok notes that profit margins and revenue per worker remain stagnant for these companies despite significant investment and hype surrounding AI technologies. He argues that while the tech giants are reaping rewards from AI, non-tech corporations are struggling to translate AI capabilities into increased revenue and profits. Slok emphasizes that AI may excel at data processing and analysis, but it lacks the essential human qualities of judgment, accountability, and understanding of complex social dynamics—elements critical for navigating reputational risks and driving business success. His assessment highlights the ongoing skepticism about AI’s real-world impact on productivity, suggesting that for many industries, the integration of AI is still in its infancy, and considerable challenges remain before meaningful financial returns can be realized.