Apollo Economist Torsten Slok Says AI Delivers Zero Financial Payoff Outside Tech
Summary
Apollo Global Management chief economist Torsten Slok says AI has delivered "zero financial payoff" to corporations outside tech. In a recent note, Slok cites flat profit margins and revenue per worker across the S&P 493 and argues AI lacks judgment on accountability and trust.
Key Points
- Slok defines the S&P 493 as the S&P 500 minus Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla.
- Slok writes that "AI may be a great calculator, but in business, intelligence is mostly judgment."
- Slok says it will be tough to turn increasingly cheap intelligence into higher revenue growth and profit margins.