Artificial intelligence has yet to deliver measurable financial benefits for most major US companies outside the technology industry, despite billions of dollars being invested in the technology.
According to a new report from Apollo Global Management, companies are spending heavily on AI but have not seen significant improvements in profits, revenue, or employee productivity.
Torsten Slok, chief economist at Apollo, said AI has so far delivered no clear financial payoff to corporate America outside the technology sector.
Most Companies Are Not Seeing Higher Profits
Slok examined the performance of 493 companies in the S&P 500 index, excluding seven major technology companies: Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla.
These seven companies, commonly known as the Magnificent Seven, have reported increasing revenue per employee and higher profit margins.
However, the remaining 493 companies have shown little change in either measure. According to Slok, there is also no clear evidence that AI is improving productivity across the wider economy.
The findings suggest that while major technology companies are benefiting financially from the AI boom, most other businesses have yet to see similar results.
However, the figures do not necessarily mean that AI provides no benefits to individual businesses. They show that its financial impact has not become clearly visible across the companies examined.
AI Spending Is Becoming a Cost for Businesses
Slok noted that many companies are beginning to reconsider their spending on artificial intelligence.
Instead of seeing AI as a way to increase profits, some businesses are treating it as an additional expense.
He explained that companies outside the technology industry often do not need the most advanced AI models and are unwilling to pay higher prices for them.
Meanwhile, startups backed by investors continue increasing their spending on AI services.
Slok believes AI’s impact on the overall economy will remain limited if its use and financial benefits stay concentrated among a small number of companies.
AI Cannot Replace Human Judgment
The economist also questioned whether cheaper and more capable AI models would automatically help businesses make more money.
He argued that business success depends on more than processing information or completing tasks quickly.
According to Slok, important decisions also require human judgment, trust, accountability, workplace culture, and an understanding of ethical concerns.
These factors influence a company’s reputation, customer relationships, and financial performance.
He suggested that even if AI becomes cheaper and more intelligent, businesses may still struggle to turn those improvements into higher revenue and profits.
Previous Research Raises Similar Concerns
Slok’s findings follow earlier studies that have questioned whether widespread AI adoption is delivering meaningful improvements in workplace productivity.
Although companies continue investing in AI tools and automation, the financial benefits have not yet become clear across much of the economy.
For now, Apollo’s analysis suggests that the biggest financial gains from AI remain concentrated among major technology companies.
The central question is whether businesses outside the technology sector can eventually use AI to increase productivity, generate more revenue, and improve their profit margins.
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