AI investment
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No signs of AI payoff outside the tech sector
opinion
2 min read
Apollo said artificial intelligence has not yet produced a measurable financial payoff for U.S. companies outside the technology sector, despite heavy investment and broad corporate interest. The firm said revenue per worker and profit margins are rising among the “Magnificent Seven” technology companies but remain flat across the other 493 S&P 500 companies. It also said available data show no signs that AI is accelerating overall productivity growth. According to Apollo, mainstream companies are reducing AI token spending because they increasingly view it as a cost that pressures margins rather than a source of growth. Venture-backed companies continue to raise spending on tokens, but Apollo said most established companies do not need the newest models and are unwilling to pay for them. It argued that AI’s macroeconomic effects will remain limited while agentic AI and token spending stay concentrated in a small part of the economy. Apollo said cheaper and more commoditized models still must translate into higher revenue and margins across mainstream businesses. It argued that business outcomes depend on judgment, context, accountability, trust, culture, unwritten rules, ethical trade-offs and fairness—factors AI does not understand. Apollo said AI’s economic impact will ultimately be determined by performance in the S&P 493 rather than the Magnificent Seven.