Key facts
- AI spending is viewed as a cost center by mainstream corporate America, weighing on margins.
- AI has delivered zero financial payoff to corporate America outside of the tech industry.
- Revenue per employee for tech companies has risen from $550 to nearly $800 since 2022.
- Revenue per employee for non-tech S&P 500 companies has lingered around $550 for seven years.
- Profit margins have soared among tech companies since 2022.
- Profit margins have stagnated at about 10% for non-tech companies.
Apollo Global Management, a major investment firm, has stated that artificial intelligence is not yet delivering a significant financial return for most of corporate America. While tech giants like the 'Magnificent Seven' are experiencing revenue growth due to AI, other industries are increasingly viewing AI investments as a cost rather than a driver of growth. Chief Economist Torsten Slok noted that AI spending weighs on margins for non-tech companies. The firm's analysis highlights a divergence in key financial metrics between tech and other sectors since 2022.