AI offers no financial payoff for most companies, says Apollo economist
| Source: TechCrunch | Original article
An Apollo economist says AI has yielded no financial gains for most U.S. companies outside the tech sector despite heavy investment and hype.
Apollo Global Management’s chief economist has concluded that artificial‑intelligence spending has produced “zero financial payoff” for the bulk of corporate America, with measurable gains confined to the technology sector. In a note released on Saturday, the analyst examined the performance of S&P 500‑plus companies – excluding the so‑called “Magnificent 7” tech giants – and found no uplift in profit margins, revenue per employee or other productivity metrics despite the wave of AI‑related investments announced over the past year.
The finding matters because it challenges the prevailing narrative that AI is a universal driver of efficiency and growth. Investors have poured billions into AI projects across industries, from manufacturing to finance, often on the promise of cost cuts and revenue expansion. Apollo’s analysis suggests that, at least for now, those expectations have not materialised outside the tech enclave that is already reaping the benefits of advanced models and cloud services.
The report adds a data‑driven perspective to earlier observations that AI’s impact on managers remains “mostly a headache” and that public sentiment in the United States is increasingly skeptical of AI’s societal value. It also follows recent market signals, such as OpenAI’s valuation cut and Replit’s shift of spend from Anthropic to OpenAI, indicating a tightening of AI‑related budgets.
What to watch next: analysts will likely scrutinise upcoming quarterly earnings for signs of delayed AI returns, while corporations may adjust spending or seek more targeted use‑cases. Watch for follow‑up studies that broaden the sample set or explore sector‑specific pilots, and for any strategic moves by non‑tech firms to partner with AI consultancies – a trend hinted at by Anthropic’s recent European venture – that could finally translate hype into measurable profit.
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