Economist Says AI Has Yet to Pay Off for Firms Outside Big Tech

Torsten Slok, chief economist at Apollo Global Management, says artificial intelligence has yet to deliver financial returns for corporate America outside the technology sector. In a note cited by TechRadar, Slok argues that despite heavy investment and widespread attention, most large companies have not seen clear financial gains from AI.

Slok compares the “S&P 493”—the S&P 500 excluding Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla—with those seven technology companies, which he calls the “Mag 7.” He says revenue per worker appears to be rising for the Mag 7 but remains flat for the S&P 493. He also says profit margins have not shown signs of an AI-driven improvement among the broader group.

Slok says mainstream corporate America is pulling back on spending for AI tokens, treating it as a cost that weighs on margins rather than a source of growth. He adds that venture-capital-backed companies are increasing token spending, while many other companies see little need to pay for the latest models.

He says cheaper, more capable models could give businesses a chance to raise revenue and margins, but argues that outcomes depend on context and judgment. Slok also points to accountability, trust, culture, unwritten rules, ethical trade-offs and fairness as factors AI does not understand. He concludes that the AI story will be decided in the S&P 493, where he says there is so far no evidence of improving revenue growth or margins outside tech.