Artificial intelligence has yet to demonstrate a significant impact on the profitability of major corporations outside the technology sector, according to Torsten Slok, chief economist at Apollo Global Management. In his recent analysis, Slok focused on what he terms the S&P 493, which comprises the S&P 500 index excluding the seven largest tech firms: Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla. His findings suggest that the anticipated financial benefits from AI investments have not materialized for most companies in this broader index.

Slok's assessment, published on October 24, indicates that the heavy investments made in AI have not translated into measurable gains in profitability or revenue per employee for the majority of U.S. companies. This challenges the prevailing expectations that such investments would lead to rapid improvements in business performance. The analysis highlights a stark contrast between the financial outcomes of the top tech companies and the remaining firms in the S&P 500, which have not experienced similar profit boosts from AI technologies.S2

The findings raise important questions about the effectiveness of AI adoption across various industries and suggest that the hype surrounding AI's transformative potential may be overstated, particularly for companies outside the tech sector. As businesses continue to invest heavily in AI, the lack of immediate returns could lead to a reassessment of strategies and expectations in the coming months.S1S2