Torsten Slok, chief economist at Apollo Global Management, argues in a recently published note that artificial intelligence has so far failed to deliver financial improvements for large companies outside the technology sector. Apollo Global Management is the private equity firm that previously owned TechCrunch.
What did he examine?
Slok analyzed what he calls the S&P 493 — the S&P 500 excluding Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla. From this sample he finds that profit margins and revenue per worker appear flat, and there is no clear evidence that AI has raised productivity at these firms.
Key arguments
Slok notes that despite massive investment and widespread hype around AI, the technology has produced "zero financial payoff" for corporate America outside of tech. He expresses doubt that companies will be able to convert "increasingly cheap intelligence" into higher revenue growth and improved profit margins.
He further argues that while AI can be a powerful calculator, business intelligence often comes down to judgment. According to Slok, AI does not understand accountability, trust, corporate culture, unwritten rules, ethical trade-offs or fairness — factors that shape reputational risk and ultimately influence revenue growth and profit margins.
Context from other research
The note also references recent academic and industry studies that have similarly found AI has not yet generated significant productivity gains across the economy. Slok's findings are therefore consistent with some other research suggesting that AI's macroeconomic impact has not yet been transformative.
Why this matters
If AI investments do not translate into higher sales or better margins for non-tech firms, that has implications for corporate strategy and capital allocation. Slok's analysis suggests a cautious view: technology spending alone may not guarantee improved financial performance in traditional industries.
Summary
Torsten Slok concludes that, based on his S&P 493 analysis, AI has not produced measurable financial benefits for large non-technology companies — profit margins and revenue per worker remain flat, and further evidence will be needed to show whether AI can improve performance in these sectors over time.
