Research1 min readLast updated
Apollo economist claims AI yields no financial benefits for most companies
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Summary
Torsten Slok, the chief economist at Apollo Global Management, has stated that AI has not delivered financial benefits to the majority of companies outside the technology sector. His analysis highlights stagnant profit margins and revenue per worker as indicators of this lack of payoff. Slok emphasizes that while AI is a powerful tool, it does not possess the necessary judgment and understanding to effectively drive business success in diverse industries.
Takeaways
- AI has not improved financial performance for most non-tech companies.
- Stagnant profit margins and revenue per worker indicate limited impact.
- AI's effectiveness is hampered by its lack of judgment and understanding.
Why it matters
This insight challenges the prevailing narrative that AI universally enhances business performance, prompting companies to reassess their AI strategies and investments.
PMs
Product managers should consider this analysis when evaluating the ROI of AI initiatives and focus on integrating human judgment with AI tools for better outcomes.
Developers
Developers should be aware that while AI can automate processes, its limitations in decision-making highlight the need for human oversight in applications.
Students & job seekers
Students and job-seekers should recognize that expertise in AI alone may not guarantee job security; understanding business contexts and human factors is equally important.
Covered sources
Source titles and excerpts stay in their original language for accuracy and traceability.
TechCrunch AI
AI delivers ‘zero financial payoff’ to most companies, Apollo economist says"Despite massive investments and widespread hype around artificial intelligence, the technology has delivered zero financial payoff to corporate America outside of tech."