Torsten Slok, chief economist at Apollo Global Management, stated that artificial intelligence has not improved the bottom line for major corporations outside the technology sector. In a recent note, Slok examined a group of companies he calls the S&P 493, which consists of the S&P 500 index minus Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla. His analysis found that profit margins and revenue per worker in this group remain flat, with no evidence that AI is boosting productivity.
Despite widespread hype and heavy investment in the technology, Slok argued that it will be difficult for non-tech businesses to convert cheaper intelligence into higher revenue or profit margins. He noted that while AI functions well as a calculator, business success often depends on judgment. Slok wrote that AI does not understand accountability, trust, culture, unwritten rules, ethical trade-offs, or fairness. He said these factors shape reputational risk and ultimately drive revenue growth and profit margins.
Recent studies support Slok’s view that AI has yet to deliver significant productivity gains.