Part of The AI Chip Bubble · 12 stories · since Oct 14 · newest 4d ago
Apollo economist Slok: AI has delivered 'zero financial payoff' outside techBloomberg ties Apollo findings to looming Big Tech earnings risk
6 Oct 26 4:35 AM · 13d ago · 7 articles · 24 posts · 11 comments · 6 sources · development 6 of 6
Bloomberg reporting connected the Apollo analysis to this week's earnings from Alphabet, Amazon and Microsoft, noting investors are growing impatient with AI capex and that markets may punish any disappointment as harshly as they did Meta's spending plans.
“Private Equity firm Apollo sees no point in "AI" in all but big tech companies.”
redwolf.ws, Bluesky user · bluesky ↗Torsten 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 2 claims about this development
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first by Channel News Asia, 12d ago
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first by Bloomberg, 13d ago
What people said 23 voices · best of 25 · verbatim
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"Anthropic has focused on businesses as its primary paying customers, unlike OpenAI, which has courted everyday consumers for ChatGPT." "AI delivers ‘zero financial payoff’ to most companies, Apollo economist says"
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Ok, now you're bringing data so I (also a rando commenter) will take you seriously. I think you've used a bot for it but as long as it's correct that's cool. I already agreed with you that the tech giants will survive with or without AI. And I don't care about their survival. I've never thought they'd die but I wouldn't care if they did, because…
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Not really. Like, yes, relative to your competitors. But, if the cost of growing potatoes is ten cents per potato, and then I make something that can produce potatoes for one cent then I'd expect everyone to just have more potatoes. This would drive down the cost of potatoes, because the supply would be saturated eventually, but AI is supposed to…
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Key Big Tech firms are expected to show healthy growth when they report their earnings, but investor concerns over how much money they're spending on AI and when it will start to pay off is clouding the picture. https://www. japantimes.co.jp/business/2026 /10/26/ai-spending-tech-earnings/?utm_medium=Social&utm_source=mastodon # business # ai #…
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techcrunch.com/2026/10/25/a... Private Equity firm Apollo sees no point in “AI” in all but big tech companies.
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Yeah many companies could have grown already if others were willing to pay for it. I'm also rather seeing customers wanting less software, fewer licenses and expecting more features at a lower price. We're ourselves trying to reduce duplicate licenses, dropping services, reducing seats for Salesforce and friends whenever possible etc. Just like in…
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I currently work in E-commerce, local online marketplace in Kazakhstan. I scraped all millions of goods in the marketplace, then analyzed top 30k goods with AI. Goal here to find it's supplier in China accurately and estimate weight, similarity, etc. That index gave me huge competitive advantage compared to other sellers and extremely boosting my…
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"The bottom line is that the AI story will be decided in the S&P 493, not the Mag 7, and so far, there is no evidence that revenue growth or margins are improving outside the tech sector." No Signs of AI Payoff Outside the Tech Sector | The Daily Spark https://www. apollo.com/wealth/insights-new…
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米Apolloのチーフエコノミストは、大手テック7社を除くS&P500の493社で、利益率も従業員1人あたり売上も横ばいで、AIが生産性を上げた形跡は見えないと指摘しました。「ビジネスでの知性の大半は判断で、AIは説明責任や信頼、不文律を理解しない」とも書いています（TechCrunch）。 https://techcrunch.com/2026/10/25/ai-delivers-zero-financial-payoff-to-most-companies-according-to-apollo-economist/ #AI #経済
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AI mostly sucks. Not saying it has no utility. But productivity, nah not really. Pulling and compiling data sure. Real world problems, port congestions, sla failures, force majeure nope. Not even close. I work in supply chain. I have heard this it’ll be easy to automate crap for 15 years. “AI” is just the latest variant of SaaS.
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I have always wondered how this technology is going to actually effect the majority of the GDP in our country. Example: How is this LLM technology going to benefit me and make me more money in my laundry mat? How is it going to benefit the tourism industry? How is it going to benefit the Hotel industry? How is it going to effect the Bar and Liquor…
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Dit zou toch voldoende moeten zijn om de AI-bubbel eindelijk te laten knappen. “Despite massive investments and widespread hype around artificial intelligence, the technology has delivered zero financial payoff to corporate America outside of tech.” https://www. apollo.com/insights-news/insig…
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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,' [Apollo’s Torsten] Slok said."
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Ok, so you aren't up to date with what's been learned about the circular financing situation these companies are doing. It's covered in the Bloomberg article, but if you prefer video try this instead:
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AI payoff in the tech sector so far is the loss of thousands of jobs, the disappearence of entry-level positions, a flood of low-quality software and more cybersecurity risks.Thus far AI has been great at extracting value from every area its introduced in, but terrible at actually generating value.
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“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.” *AI vendors https://www. apollo.com/wealth/insights-new s/insights/daily-spark/no-signs-of-ai-payoff-outside-the-tech-sector
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AI delivers ‘zero financial payoff’ to most companies,…And more importantly, it’s environmentally disastrous and everyone hates data centers
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> Adopting AI tools that somebody else created, and are equally available to your competitors, won't increase your revenue or marginsThe only way more efficient operations doesn't make margins go up is if prices go down. Is that what we're seeing?
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"Revenue per worker is rising for the Mag 7 but is flat for the S&P 493… Profit margins are rising for the Mag 7 but are flat for the S&P 493… And there are still no signs of AI boosting productivity growth" https://www. apollo.com/wealth/insights-new s/insights/daily-spark/no-signs-of-ai-payoff-outside-the-tech-sector
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I think it all depends what someone considers 'financial payoff'. Does AI cost money? Yes. Does it save someone time? Yes. If I get back 1 hour of my time by using AI in my work then that could be considered financial payoff.
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The AI RCEssion is driven by tech debt, but that debt is not evenly distributed. AI isn't the adversary coming to destroy us, it's the auditor pointing out our decades of neglect and lack of investment in secure systems. https:// blog.tedivm.com/rants/2026/10/ the-ai-rcession-has-begun/
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Yea no. Corporate America needs to go to school to learn that their monopoly supplier will dis-intermediate and squeeze them, which Chinese companies will be able to access abundant extremely cheap AI at marginal cost
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A new report reminds us what we already mostly knew: Generative AI can be beneficial in coding, but not in many other domains. https:// techcrunch.com/2026/10/25/ai-d elivers-zero-financial-payoff-to-most-companies-according-to-apollo-economist/
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