Apollo says AI has delivered 'zero financial payoff' outside the tech industry
Only tech companies are seeing growth from the AI boom, Apollo Global Management said.
TL;DR
- The 'Magnificent Seven' tech companies are benefiting from AI revenue growth, but this is not shared by other industries.
- Mainstream corporate America views AI spending as a cost center that negatively impacts profit margins.
- Outside of tech, AI has delivered zero financial payoff to corporate America.
- Tech companies have seen revenue per employee skyrocket since 2022, while other S&P 500 companies have seen no significant change.
- Profit margins have soared for tech companies post-2022, but have stagnated around 10% for others.
- AI has not yet dramatically increased overall economic productivity growth as predicted by optimists.