Apollo’s economist reveals AI delivers zero financial payoff to non-tech firms.
Apollo Global Management’s chief economist Torsten Slok issued a blunt reality check on Wall Street: outside Big Tech, artificial intelligence delivers zero financial payoff to corporate America.
When you remove the Magnificent Seven tech giants from the S&P 500, profit margins and revenue per worker across the remaining 493 companies stay flat.
The broader market sees zero ROI despite spending billions on generative AI initiatives. Tech vendors cash massive checks selling infrastructure and API tokens, while traditional enterprises burn cash on flashy pilots that never translate into bottom-line growth.
This brutal ROI gap exposes the real problem: executive FOMO.
CEOs across diverse industrial domains are in a rush to onboard expensive AI subscriptions. This won’t identify or solve the actual business problems. However, what this will do is amplify existing friction points.
AI is technically a newer tech, and forcing it onto fragile legacy systems? That isn’t the solution. But hype trumps capability.
A chatbot that summarizes internal slide decks does not automatically create enterprise value or boost operational leverage.
The AI honeymoon phase is fizzling out.
Vendors will soon face a wave of cancellations as CFOs demand proof of profit. AI isn’t a magic fix. Each buyer now wants clear financial frameworks before spending another dime.
Tech hype might boost stock valuations for a season, but a sustainable business plan only demands tangible efficiency.
