Apollo Chief Economist: No AI Returns Seen Outside the Tech Industry

Apollo Chief Economist Torsten Slok noted in Daily Spark that AI has not yet delivered financial returns outside the tech industry: revenue per employee and profit margins are rising for the Mag 7, while the S&P 493 is essentially flat, and there are no signs that productivity growth has been boosted by AI. The article argues that as models become commoditized, mainstream companies are treating token spending as a cost item that drags down profit margins rather than a source of growth; the economic impact of AI will ultimately depend on the S&P 493 rather than the Mag 7.