Part of The AI Chip Bubble · 12 stories · since Oct 14 · newest 4d ago
Apollo economist Slok: AI has delivered 'zero financial payoff' outside techApollo's Slok publishes 'No Signs of AI Payoff Outside the Tech Sector'
3 Oct 24 3:47 PM · 14d ago · 15 articles · 11 posts · 29 comments · 6 sources · development 3 of 6
Apollo Chief Economist Torsten Slok released a Daily Spark research note arguing AI has delivered zero financial payoff to corporate America outside of tech, with flat revenue per worker, flat margins, and no productivity gains for the S&P 493.
“Despite massive investments and widespread hype around artificial intelligence, the technology has delivered zero financial payoff to corporate America outside of tech.”
Torsten Slok, Apollo Chief EconomistTorsten Slok Apollo Chief EconomistApollo Asset management firmAlphabet, Amazon, Microsoft Big Tech companies reporting earningsMeta Big Tech company, prior earnings reference point
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What was reported 8 claims about this development
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first by Demokratis.co.id, 14d ago · also HN Best, HN Frontpage, PPC Land, Bloomberg
4 more headlines
- No Signs of AI Payoff Outside the Tech Sector HN Best · 14d ago
- Apollo Says AI Has Shown ‘Zero’ Payoff Outside Tech PYMNTS.com · 14d ago
- Apollo finds zero AI payoff outside tech as S&P 493 margins stay near 10% PPC Land · 14d ago
- Apollo's Slok Says AI Has Delivered Zero Payoff Outside of Tech Bloomberg · 14d ago
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first by Indian Express, 13d ago · also Seeking Alpha, Yahoo Finance, Futurism
3 more headlines
- Apollo’s Slok says AI has delivered 'zero payoff' outside tech Seeking Alpha · 13d ago
- Apollo exec says AI has ‘zero financial payoff’ beyond tech sector Yahoo Finance · 12d ago
- Top Economist Finds That AI Has Provided "Zero Financial Payoff" to Companies Outside Tech Futurism · 12d ago
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first by Business Insider, 14d ago · also TechCrunch, KRON4, HN Frontpage
4 more headlines
- AI delivers ‘zero financial payoff’ to most companies, Apollo economist says | TechCrunch Mastodon · 14d ago
- AI delivers ‘zero financial payoff’ to most companies, according to Apollo economist TechCrunch · 14d ago
- AI has delivered ‘zero’ payoff outside of tech, leading economist says KRON4 · 13d ago
- Apollo says AI has delivered 'zero financial payoff' outside the tech industry HN Frontpage · 13d ago
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first by TechCrunch, 14d ago · also Bloomberg Tech
1 more headline
- AI Provides ‘Zero Payoff’ to S&P 493 Outside Tech, Apollo Economist Says Bloomberg Tech · 14d ago
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first by Semafor, 13d ago
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first by Implicator.ai, 14d ago
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first by FourWeekMBA, 15d ago
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first by Apollo Global Management, 15d ago
What people said 24 voices · best of 33 · verbatim
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Here's the data for US personal consumption expenditures which comprise 2/3rds of the GDP:U.S. PERSONAL CONSUMPTION EXPENDITURES (Q2 2026 BEA DATA)==============(In USD Billions)TOTAL PERSONAL CONSUMPTION EXPENDITURES $21,993.2 100.0% SERVICES $15,131.8 68.8% - Housing and Utilities $3,801.2 17.3% - Health Care $3,551.6 16.1% - Financial Services…
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Apollo’s chief economist finds that there is still no measurable impact of AI adoption on corporate America outside of big tech. Revenue per employee and profit margins are rising for the Magnificent Seven but flat for the other 493 S&P 500 companies. The AI industry is making money selling AI, but its customers aren’t yet seeing any payoff…
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I have mixed experience. AI has helped me investigate issues faster and easier. Connecting Splunk, Datadog, and other tools has been great. Anything else varies wildly. It's great to making sure the changes has no side effects. But writing Specs? Writing Jira tickets? Writing big code changes? It's awful. I hate reading AI generated specs. They…
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the AI payoff debate is having its 1987 moment. Apollo's chief economist put out charts this week: revenue per worker and profit margins rising for the Mag 7, flat for the other 493 companies in the S&P 500. no visible boost to productivity growth yet. his read: outside tech, companies are startin...
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I don't see why a payoff would have appeared yet. Many (but certainly not all) software companies have increased their output without hiring more people. But having software with more features doesn't necessarily drive immediate productivity gains in the rest of the economy. It will take time for those benefits to percolate. We've only had access…
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Quelle surprise… https://www. apollo.com/wealth/insights-new s/insights/daily-spark/no-signs-of-ai-payoff-outside-the-tech-sector
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Can I introduce you to the dot-com bubble? But jokes aside, yes, this entire thing is economically perilous. We need to separate the companies from the technology, even if it bursts and these companies go belly up, the technology isn’t going anywhere and it will be absolutely gutting white collar jobs with automation
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Apollo chief economist Torsten Slok just published a gloomy report on AI. imo, other signals I'm watching don't really support these. > Slok says mainstream firms don't need the latest model and won't pay for it, and with no bottom-line gain they now treat token spending as a cost center that wei...
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> As an example, take a factory that was built around hyrdo-power like a grain mill. You can't just take an electric motor and drop it in in place of the water wheel.Your chosen example is rather more fitting for the opposite case. Dropping an electric motor is pretty easy, you just attach it to the other side of the axle. But there is really no…
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https://preview.redd.it/ziyofrsfphxh1.jpeg?width=1206&format=pjpg&auto=webp&s=ff18e182373c12d5c15a725573d918d2c60fc1df
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When I tried to use CoPilot at my day job, I set up a prompt to process scans of checks and invoices (with the MICR account bar code line covered w/ a pen so that there was no PII), it would sort of work for 20 files at a time to write a .bat file command to rename the source image based on the content of the check and invoice --- this removed the…
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https://preview.redd.it/fraovxjtphxh1.png?width=1536&format=png&auto=webp&s=c55e7de37e5f10f24ae5d1f24692933da348900a
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Cool analogy, but there's another possibility: software is uniquely suited for being boosted by LLM-based coding agents. That's not to say LLMs are useless in other domains, but they may not yield as much benefit.Software creation tools have been worked on for decades to keep fallible human coders out of trouble as much as possible. Starting with…
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They only have to spend 40 trillion to get there. Hear that investors only -10 trillion buy in now or else.
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Well, of course not. If you borrow a trillion dollars to build a 1¢ aspirin machine to compete with $1 generic aspirin, you are strongly incentivized to sell your aspirin for 99¢. We don’t see productivity gains, because approximately all of the gain is captured as revenue for AI companies.It’s weird that this has to be spelled out for so many…
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The tech sector is the most software-defined and virtual of all sectors, it's natural that they are first to change. Other industries need to make capital investments to adapt to change.You can see a similar history with electrification. A few industries went quickly, but then it took like a decade of little growth before the true benefits showed…
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> You can see a similar history with electrification.It took a massive amount of new infrastructure for electricity to benefit people. Lines had to be run, houses and businesses had to be wired, new light fixtures and appliances had to be purchased and installed.LLMs can currently be accessed and used everywhere instantly by everybody right now…
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Article is spot on!The only issue is that the benefits would be more enmeshed with other gains in other industries.,Heck, even in Software Development, the real benefits are not with mass labor elimination resulting in cost savings but with increasing available throughput. Technology if used to the fullest potential should be able to expand the…
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No signs of AI payoff outside the tech sector...yet. I think it's partially because our harnesses are generally much, much better. And engineers seem to be more deft at figuring out where AI provides real benefit and where it needs a watchful eye.I'm seeing non-engineers use AI to send more emails, have more meetings, create more documents, and…
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I am in a tech role that straddles traditional business. Yes, LLMs are very adept at software development and of course we are early adopters, but the amount of other things that can be automated or at least significantly augmented hasn't scratched the surface.At the start of this all, execs were clamoring for "AI" and at that time the models were…
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We're not seeing full automation for things that ought to be automatable now. Customer service chatbots still aren't very good. Salesforce ought to be taking over entire marketing operations, not just supporting sales but replacing it. The medical office side of insurance ought to be automatic now. The pick and place side of warehouse operations…
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The issue is that software is almost unique it the sense that you can use reinforcement learning to get the desired outcome - does it compile or not? A large amount of automated trial-and-error runs do that.It's not true elsewhere. The definition of "is this a good outcome" is pretty nebulous in other areas."Is this what the law says?"Yes, but…
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One industry example.. We have been giving students computing devices for years with the cost of educating students going up year after year.. Yet scores keep dropping.. No productivity gains here.. I do not think these results are unique to the education sector.. There are probably alot of businesses where nothing much will change except slight…
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"Perhaps most importantly, AI does not understand accountability, trust, culture, unwritten rules, ethical trade-offs or fairness, all of which shape reputational risk and ultimately drive revenue growth and profit margins" - This is perhaps the most consequential sentence in the entire article, and yet was almost mentioned as an after-thought.
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