Major U.S. Companies Outside the Tech Sector Have Not Profited from AI

    According to a new analysis by Apollo Global Management Chief Economist Torsten Slok, artificial intelligence has yet to deliver financial benefits to major U.S. companies outside the technology sector. Despite significant investment and interest, the technology has generated zero financial returns for these companies. The analysis examined companies’ profits, revenue and employee productivity.    Slok excluded the 7 technology giants in the S&P 500 index from his calculations. They are Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla. He called the remaining companies the “S&P 493.” According to the results, the group’s profit margin, meaning the share of profit in revenue, has remained virtually unchanged. There has also been no significant difference in revenue per employee. The figures do not confirm that artificial intelligence has increased productivity.    Slok is also skeptical of the idea that nontechnology companies are simply lagging in benefiting from artificial intelligence. According to him, it will be difficult to turn increasingly affordable AI tools into faster revenue growth and higher profits. The economist compares the technology to a powerful calculator. However, business decisions depend largely on human judgment. Artificial intelligence does not understand issues such as responsibility, trust, corporate culture, unwritten rules, ethical choices and fairness.    Recent studies also show that artificial intelligence has yet to generate noticeable productivity growth. These findings are consistent with Slok’s observation that there has been no significant change in companies’ revenue and profits. According to the analysis, the large sums spent on artificial intelligence have yet to produce measurable financial results outside the technology sector.