Part of The AI Chip Bubble · 12 stories · since Oct 14 · newest 4d ago
Apollo economist Slok: AI has delivered 'zero financial payoff' outside techSocial media amplifies Slok's 'zero payoff' finding
4 Oct 25 12:21 AM · 14d ago · 4 articles · 8 posts · 24 comments · 6 sources · development 4 of 6
Finance-focused accounts on X and Bluesky spread the Apollo finding rapidly, framing it as evidence the promised AI productivity boom has not materialized beyond the tech sector.
“493 out of 500 companies in the S&P 500 saw no benefit from adopting AI...”
@puckrinTorsten 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 2 claims were published in its stretch
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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 Tom's Hardware, 14d ago
What people said 24 voices · best of 29 · verbatim
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APOLLO: AI HAS DELIVERED “ZERO PAYOFF” OUTSIDE BIG TECH Apollo Chief Economist Torsten Slok warns that massive AI spending has yet to deliver measurable productivity gains across corporate America. Revenue per worker and profit margins are rising for the Magnificent Seven but
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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. And there are still no signs of AI boosting productivity growth https://www. apollo.com/wealth/insights-new…
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I have worked in multiple companies where the internally developed software was central to the business success, yet it was handled in an extremely bad way, preventing it from using even a small percentage of its potential. The (good) developers were not the main problem there, but the management. The management did constantly override technical…
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Tech sector has always been ultra-fast at adapting new technologies, other sectors will take between 5 to 15 years. My partner was recently working for an insurance company that had only a few years ago moved away from their paper files to digital, and even then still had rooms of files that they'll never move to digital. Her job will eventually…
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Remember that AI productivity boom they were all promising?? Well, according to Apollo, there are NO signs of this through the broader economy. The only sector that benefits is tech. Read that again. 493 out of 500 companies in the S&P 500 saw no benefit from adopting AI...
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well well well. https://www. apollo.com/wealth/insights-new s/insights/daily-spark/no-signs-of-ai-payoff-outside-the-tech-sector
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The problem with this analysis is twofold.1. Even before AI, the U.S. economy was growing because of a handful of tech companies. The rest of the companies were collapsing.2. If revenue per worker is stagnant despite AI investment, we don’t know what the revenue per worker would be without AI investment.3. There’s no reason to believe AI should…
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You edited your comment I after I responded. You only had one listed in your reply to me. Also you added back the other ML things that are not LLMs that were out long before venture capital build up. Still bot slop grammar and diction. You’re making no sense too, because I did have a counter argument. I don’t have to make counterpoints here…
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There are three kinds of lies: lies, damned lies, and statistics.I'm pretty sure most of the growth comes from companies laying off useless COVID-epoch engineers. If you lose the dead weight, you climb up without ever gaining more profit. And IT companies hired the most during COVID — the rollback is logical and it has nothing to deal with AI.But…
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The technology itself is literally pattern matching, it's nothing more than a glorified search engine. It's owners have scraped the web which is primarily the reason it has any benefit at all tbh, but without that the tech would never be able to stand on its own, let that sink in.
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Anecdotally this is not true. At $JOB I'm responsible for running the accounting function of a small US public company. With tools like OMP and shortcut my team has been able to significantly reduce the time it takes to prepare internal and public reporting documents. Not only are we getting more done within tighter deadlines, I have also observed…
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Bored. Also thought I was actually missing something for a second lol a few other people have also brought up that this technology has existed for a while and wasn't sure if I was missing something or they were all independently confused about what I was talking about.
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> the AI story will be decided in the S&P 493, not the Mag 7Maybe? But aren’t they the Mag 7 for a reason? Don’t they control a substantial part of GDP? Don’t they have a significant impact on the global economy that the s&p 493 may not - especially with large scale adoption of these tools.Not saying that this means AI spending at current rates…
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They were supposed to, until Chinese Open Source competitors did the most epic rug pull of all time It was a gigantic, historical mistake for the US to build an empire made out of software, while the Chinese focused on the HARDware.
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I think what people fail to appreciate, is that past a certain size, organizations and the people within them get so tightly wrapped up in working a certain way that it becomes nearly impossible to fix without rebuilding the whole thing from the ground up.If you want to see if AI is paying off, look at new startups that build AI-native versus…
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the crash isnt a traditional crash. it will lead to hyper inflation. essentially those that arent in the market are fucked. we will just print ourselves out of any crash.
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A winner of the Nobel Prize in Economics, Paul Krugman wrote in 1998, “The growth of the Internet will slow drastically, as the flaw in ‘Metcalfe’s law’—which states that the number of potential connections in a network is proportional to the square of the number of participants—becomes apparent: most people have nothing to say to each other! By…
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r/noshitsherlock CFOs, some still recovering from the tokenmaxxing sticker shock heart attacks, figured that out when they had to release last quarter’s financials.
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Look at how many tech or tech-adjacent companies are in the S&P: https://en.wikipedia.org/wiki/List_of_S&P_500_companiesLike %40 of the companies in the index are tech or IT. SO how does the supposed flat line across all those tech companies fit your thesis?
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Look at what people have paid for and tolerated for decades. Quality has never been a big concern.
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I think you are missing the other side of the coin where it is actually government regulations holding adoption back in many sectors. Ie you are only beginning to see benefit in driving now because regulation has been forced enough to change to let the pilot projects happen. The millions of drivers who should have been fired by now almost all…
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My average price in AMD is 120. Trimmed 1/3 at 526. I guess I’m smarter than hedge funds
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This kind of seems to me like exactly what a reasonable person would expect, based on the nature of the technology and the dynamics of the market bubble: getting plausible-looking-text-generators to do text munging on web apps and servers doesn't seem likely to increase base productivity, but the companies who can collect on the hype will make a…
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But do you really see a change in the technology sector? I don’t. If you plot operating profit per employee for Apple and Alphabet, it’ll show a trend up but since COVID. If you do the same for MS, it’ll show a steady trend since Nadella became the CEO. Amazon is flat, so is Tesla. Can’t really see a change caused by AI.
All 6 developments of Apollo economist Slok: AI has delivered 'zero financial… →
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