From The Next Web · Cristian Dina · · 1m
Apollo’s Slok finds no AI payoff for US companies outside Big Tech
Apollo Global Management’s chief economist says AI spending isn’t boosting profits for most US companies.
In brief
Apollo Global Management’s chief economist says AI spending isn’t boosting profits for most US companies. Apollo’s Slok found AI spending shows no financial benefit for non-tech US companies, with revenue per worker and profit margins flat for the S&P 500’s 493 firms. Originally reported by The Next Web.
Apollo’s Slok finds no AI payoff
Apollo Global Management’s chief economist says AI spending shows zero financial benefit for US companies outside tech.
“Artificial intelligence has delivered “zero financial payoff” to corporate America outside the tech sector.”
Tech giants vs. other S&P 500 firms
Revenue per worker rose for tech giants from $550,000 to $800,000 in 2022, while other S&P 500 firms stayed near $550,000.
“Revenue per employee at the tech giants rose from about $550,000 in 2022 to nearly $800,000.”
Mainstream companies avoid AI costs
Most non-tech firms don’t need AI tokens and are unwilling to pay for them, according to Apollo’s data.
“Mainstream companies do not need the latest model and are unwilling to pay for it.”
AI spending limited to small groups
The top 10% of firms account for 95.6% of AI spending, with venture capital backing most of the top 1%.
“The top 10% of firms account for 95.6% of spending on OpenAI and Anthropic.”
What matters most
Apollo’s Slok found AI spending shows no financial benefit for non-tech US companies, with revenue per worker and profit margins flat for the S&P 500’s 493 firms.
