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AI delivers ‘zero financial payoff’ to most companies, Apollo economist says

Corporate America outside the technology sector has received zero financial payoff from artificial intelligence investments, according to an analysis by Apollo Global Management chief economist Torsten Slok. Despite heavy corporate spending and widespread industry hype, revenue per worker and profit margins for the S&P 493 remain flat near 10 percent. While Big Tech companies cash in on the technology, rising token costs threaten to squeeze corporate profit margins for the rest of the market. Data cited by Apollo shows that the top 10 percent of firms account for the vast majority of AI inference spending.

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  • ✓ Artificial intelligence has delivered zero financial payoff to corporate America outside of the tech sector, according to Apollo Global Management chief economist Torsten Slok.
  • ✓ Revenue per worker and profit margins for the S&P 493 remain flat near 10 percent.
  • ✓ The top 10 percent of firms account for 99.5 percent of AI inference spending in data cited by Apollo.
  • ✓ Big Tech is cashing in on artificial intelligence while rising token costs threaten to squeeze corporate profit margins for the rest of corporate America.
🛡️ Source Corroboration: 16 independent reporting domains (95% confidence) ⏱ Read time: ~3 min

What changed

Apollo Global Management released an economic analysis detailing flat revenue and profit margins across the S&P 493 despite heavy corporate investments in artificial intelligence.

Live updates

  1. Apollo Economist Says AI Delivers Zero Financial Payoff Outside Tech

    Corporate America outside the technology sector has received zero financial payoff from artificial intelligence investments, according to an analysis by Apollo Global Management chief economist Torsten Slok. Despite heavy corporate spending and widespread industry hype, revenue per worker and profit margins for the S&P 493 remain flat near 10 percent. While Big Tech companies cash in on the technology, rising token costs threaten to squeeze corporate profit margins for the rest of the market. Data cited by Apollo shows that the top 10 percent of firms account for the vast majority of AI inference spending.

    Why it matters

    The assessment highlights a growing disconnect between massive capital expenditures on artificial intelligence and tangible financial returns for most businesses. As stock and bond trades unravel, market participants are scrutinizing the core economic assumptions behind the current AI boom. This dynamic underscores a widening gap where only a tiny fraction of companies monetize AI effectively while the broader corporate sector absorbs rising operational costs.

    What is confirmed

    • Artificial intelligence has delivered zero financial payoff to corporate America outside of the tech sector, according to Apollo Global Management chief economist Torsten Slok.
    • Revenue per worker and profit margins for the S&P 493 remain flat near 10 percent.
    • The top 10 percent of firms account for 99.5 percent of AI inference spending in data cited by Apollo.
    • Big Tech is cashing in on artificial intelligence while rising token costs threaten to squeeze corporate profit margins for the rest of corporate America.

    Still unconfirmed

    • Elon Musk stated that SpaceX closed $40 billion in GPU debt.

    What to watch next

    • Evidence of whether the rest of corporate America can turn tokens into higher profit margins
    • Broader market adjustments as stock and bond trades react to AI spending returns
    Sources used for this update (16)
    1. finance.yahoo.com — Yahoo Finance - Stock Market Live, Quotes, Business & Finance News
    2. techcrunch.com — TechCrunch | Startup and Technology News
    3. www.forbes.com — Download The Forbes App
    4. fortune.com — Hachette’s CEO says AI shortcuts are creating a ‘worse C-suite'
    5. Apollo Global Management — No Signs of AI Payoff Outside the Tech Sector
    6. Fortune — Here's the 'core economic flaw' in the AI bull case as stock and bond trades unravel, according to a top economist
    7. Bloomberg.com — Apollo’s Slok Says AI Has Delivered Zero Payoff Outside of Tech
    8. Business Insider — Apollo says AI has delivered 'zero financial payoff' to corporate America
    9. TechCrunch — AI delivers ‘zero financial payoff’ to most companies, according to Apollo economist
    10. Tom's Hardware — Big Tech is cashing in on AI while the rest of corporate America sees no financial returns — report outlines how rising token costs threaten to squeeze corporate profit margins
    11. Semafor — Hunting for AI gains outside Magnificent 7
    12. www.apollo.com — No Signs of AI Payoff Outside the Tech Sector | The Daily Spark
    confidence 95%
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