Part of The AI Chip Bubble · 12 stories · since Oct 14 · newest 4d ago
Apollo economist Slok: AI has delivered 'zero financial payoff' outside techPress widely reports Slok's findings
5 Oct 25 12:57 PM · 13d ago · 11 articles · 26 posts · 13 comments · 6 sources · development 5 of 6
TechCrunch, Bloomberg, Business Insider and Semafor published stories on the Apollo analysis, intensifying investor focus on AI spending just ahead of Big Tech earnings.
“Mainstream corporate America is pulling back and starting to view token spending not as a source of growth but as a cost center that weighs on margins.”
Torsten SlokTorsten Slok Apollo Chief EconomistApollo Asset management firmAlphabet, Amazon, Microsoft Big Tech companies reporting earningsMeta Big Tech company, prior earnings reference point
The whole story articlesvideospostscomments the bright band is this development · numbered dots are the others · click one to jump
Reported in the same hours no headline names this development itself — these 4 claims were published in its stretch
-
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 · 13d ago
- AI delivers ‘zero financial payoff’ to most companies, according to Apollo economist TechCrunch · 13d 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
-
first by Los Angeles Times, 14d ago · also Japan Times, Bloomberg
1 more headline
- AI spending fears threaten to swamp Big Tech’s strong earnings Japan Times · 13d ago
-
first by Semafor, 13d ago
-
first by Tom's Hardware, 14d ago
What people said 22 voices · best of 25 · verbatim
-
C
SLOK: “.. Revenue per worker is rising for the Mag 7 but is flat for the S&P 493. .. Mainstream corporate America is pulling back and starting to view token spending not as a source of growth but as a cost center that weighs on margins.” @bloomberg.com
-
P
This analyst's report from Apollo about AI uses the term "S&P 493" to refer to the "S&P 500 minus the Mag 7" - because if you take out the AI companies, the S&P 500 is tanking. https://www. apollo.com/wealth/insights-new s/insights/daily-spark/no-signs-of-ai-payoff-outside-the-tech-sector
-
The economy has many different resources with different supplies available. Making the supply of one resource infinite may sound like a huge win, but nothing is dependent on a single resource, everything requires a combination – just like in board game economies, you can't win by only producing wood.AI represents some weird intelligence-like…
-
The risk is not Google or Microsoft going bankrupt but realizing offering AI at massive loss is not sustainable. The will come a point when CFO will step up and either close the AI projects and write it off as a total loss or increase prices causing the majoraty to either cancel or switch to open wights models and local ot rented hosting. So far…
-
V
UB's building a data center right in the middle of campus for this
-
Z
"Despite massive investments & widespread hype around # ArtificialIntelligence , the technology has delivered zero financial payoff to corporate America outside of tech... there are still no signs of AI boosting productivity growth... With no impact on the bottom line, mainstream corporate America is pulling back & starting to view token spending…
-
If mainstream corporate America thought it would turn increasingly cheap intelligence into higher revenue growth and higher profit margins, then mainstream corporate America needs to go back to school.If you want to increase your profit margins, you'll have to innovate! Adopting AI tools that somebody else created, and are equally available to…
-
Great summary of our current situation. I strongly agree with you that this feels like the dotcom days in some ways. Apparently over investing in a new technology is a well known thing (eg. Railroads, Canals). I am really curious how this will all settle down. In hindsight it seems obvious who would win the internet, but that was not so obvious at…
-
A
Torsten Slok, Chief Economist, Apollo: "AI may be a great calculator, but in business, intelligence is mostly judgment. Judgment depends on context, and the answer varies with which human or which model you ask. Perhaps most importantly, AI does not understand accountability, trust, culture, unwritten rules, ethical trade-offs or fairness, all of…
-
I have a suspicion that, outside of tech, AI WILL speed up the mundane aspects of people’s jobs, that part which they spend 80% of their time getting through, so they can then do the 20% where they actually add value.BUT the new time they unlock will be spent doing more of the mundane work that previously just didn’t get done because it was…
-
Yeah no shit. I feel like most people who have used it interacted with it could have told you that.
-
T
"Despite massive investments and widespread hype around artificial intelligence, the technology has delivered zero financial payoff to corporate America outside of tech." https:// techcrunch.com/2026/10/25/ai-d elivers-zero-financial-payoff-to-most-companies-according-to-apollo-economist/?utm_source=dlvr.it&utm_medium=mastodon
-
The cost of training/developing a frontier model will continue to rise. The cost of inference will continue to fall. Companies don't buy models as such, they buy inference. As inference becomes a larger and larger business expense companies will optimize that spending, routing work to the "capable enough" least cost tokens.There is a lot of human…
-
R
No estáis convirtiendo PDFs a PowerPoint lo bastante rápido. "Despite massive investments and widespread hype around artificial intelligence, the technology has delivered zero financial payoff to corporate America outside of tech. Revenue per worker is rising for the Mag 7 but is flat for the S&P 493, see the first chart below. Profit margins are…
-
Current evidence is compelling us towards the shared opinion that AI is changing coding and nothing else… but do remember that AI itself is code and we are in an early phase of recursive AI improvement.We have no idea where this will take us but it’s like measuring the effects of COVID in 2020. The immediate outcomes (temporary unemployment…
-
Z
"AI may be a great calculator, but in business, intelligence is mostly judgment. Judgment depends on context, and the answer varies with which human or which model you ask. Perhaps most importantly, AI does not understand accountability, trust, culture, unwritten rules, ethical trade-offs or fairness, all of which shape reputational risk and…
-
My biggest doubt isn't whether AI will find applications for speeding up people outside of tech, but that it will atrophy learning and cognitive development to the extent that in 20 years human ability without AI will be on average much lower than it is today. Overall with AI augmentation we may be more effective, but strip away that tool and the…
-
L
Apollo: No signs of # AI payoff outside the tech sector https://www. apollo.com/wealth/insights-new s/insights/daily-spark/no-signs-of-ai-payoff-outside-the-tech-sector
-
Because AI is a tech invention and it's expected to be applied in a tech environment. As it cannot replace hand working, it cannot replace travel agents, doctors or lawyers because the latter put in human mental work that cannot be substituted yet and there is hardly any obvious chance in the near future.
-
Previously: https://news.ycombinator.com/item?id=50224463609 points by the-mitr 1 day ago | hide | past | favorite | 645 comments
-
Startups are where you can always look to see the future. The fact that startups are getting so many benefits from AI, I think, is suggestive that the rest of the economy will
-
It's because other industries are buying expensive tokens, and there's no real ROI yet.
All 6 developments of Apollo economist Slok: AI has delivered 'zero financial… →
Hacker NewsNewswiresGoogle NewsYouTubeRedditMastodonBlueskyX