AI has not benefited the bottom line of any major company outside of the tech sector, according to a recently published memo by the chief economist of Apollo Global Management (the private equity giant that owned TechCrunch).
Apollo’s Torsten Slok focuses on what he calls the S&P 493 — the S&P 500, minus Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla — and finds that profit margins and revenue per worker appear stable, with no evidence that AI improves productivity.
“Despite massive investments and widespread hype around artificial intelligence, the technology has brought no financial gains to U.S. businesses outside of technology,” Slok said.
Is it just that non-tech companies are falling behind the tech giants? Slok seemed skeptical, arguing that it will be difficult for American companies to “turn increasingly cheap intelligence into higher revenue growth and profit margins.”
“AI may be a great calculator, but in business, intelligence is all about judgment,” he wrote, later adding: “AI does not understand accountability, trust, culture, unwritten rules, ethical compromises, or fairness, all of which shape reputation risk and ultimately drive revenue growth and profit margins.” »
Recent studies have also shown that AI has yet to generate significant productivity gains.
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