Apollo: AI Only Enriched Tech Companies, Other Industries Were Dragged Down Instead
Apollo Chief Economist Torsten Slok pointed out that, outside the tech industry, AI has not brought financial returns to American companies, and mainstream enterprises are now treating token spending as a cost center that drags down profit margins. Since 2022, revenue per employee at tech companies has risen from $550,000 to nearly $800,000, with profit margins climbing sharply; at other S&P 500 companies, revenue per employee has hovered around $550,000 for seven years, with profit margins stagnating near 10%.
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"Mainstream US companies are cutting back on investment and beginning to view Token spending as a cost center that drags down profit margins rather than a source of growth. Outside the tech industry, this technology has not delivered any financial return for US companies." Torsten Slok, partner and chief economist at Apollo, said in the report.
Through a series of charts, Slok analyzed three main indicators: revenue per employee, profit margin, and productivity growth. These indicators have surged for tech companies, but not for ordinary companies.
Since 2022, revenue per employee at tech companies has soared, rising from $550,000 to nearly $800,000 at present. Meanwhile, this indicator for the other companies in the S&P 500 has changed little, hovering around $550,000 for the past seven years.
Similarly, since 2022, profit margins at tech companies have climbed sharply, while profit margins at other companies have stagnated, remaining at around 10%.