Business · 2026-10-25
Most companies outside tech still see no financial payoff from AI, Apollo economist says
Apollo Global Management chief economist Torsten Slok says AI has not yet brought a financial return to companies outside the tech sector.
What the economist said
Apollo Global Management chief economist Torsten Slok published a note saying AI has not improved the financial results of large companies outside the tech industry. Apollo is a large private investment firm that once owned TechCrunch.
Slok looks at the so-called S&P 493: the S&P 500 without seven companies: Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla. According to him, profit margins and revenue per worker at these companies are roughly flat. He sees no sign that AI is raising productivity.
Slok said: «Despite massive investments and widespread hype around artificial intelligence, the technology has delivered zero financial payoff to corporate America outside of tech».
Why this is happening
Is this simply a matter of non-tech companies lagging behind the tech giants? Slok doubts it and is skeptical that businesses can turn cheaper intelligence into higher revenue and profit. He puts it this way: «AI may be a great calculator, but in business, intelligence is mostly judgment».
According to him, AI does not understand accountability, trust, company culture, unwritten rules, ethical trade-offs or fairness. These factors shape reputational risk and ultimately drive revenue and profit.
Some recent studies have also found that AI has yet to deliver significant productivity gains.
Useful from the source
- Apollo: No signs of AI payoff outside the tech sector — The original note by Apollo chief economist Torsten Slok on the lack of AI returns outside the tech sector.
Sources: 🔗 TechCrunch — AI