Apollo Global Management Chief Economist Torsten Slok reports that artificial intelligence has generated zero financial payoff for corporate America outside the technology sector. While major tech firms like Meta and Nvidia see soaring revenue per worker and profit margins, non-tech S&P 493 companies report stagnant profit margins around 10 percent and flat revenue per employee. Non-tech firms increasingly view AI token spending as a cost burden rather than a growth engine.
Financial performance of tech versus non-tech companies
- ▪Revenue per employee for the Magnificent Seven technology companies, including Nvidia and Meta, rose from $550,000 in 2022 to nearly $800,000 as of October 2026, according to an Apollo Global Management report
- ▪Profit margins for established technology companies soared after 2022 while profit margins for non-technology companies in the S&P 500 stagnated at about 10 percent, according to Apollo Global Management
- ▪Apollo Global Management reported on October 24, 2026 that revenue per worker and profit margins remain flat for the S&P 493, which represents the S&P 500 excluding seven major technology companies
- ▪Revenue per employee for non-technology companies in the S&P 500 has remained around $550,000 for seven years leading up to October 2026, according to Apollo Global Management
Corporate reluctance to invest in AI
- ▪Mainstream corporate America does not need the latest artificial intelligence models and is unwilling to pay for them, according to Apollo Global Management Chief Economist Torsten Slok
- ▪Mainstream American corporations are pulling back on artificial intelligence spending and viewing token expenditures as a cost center weighing on profit margins, according to Apollo Global Management economist Torsten Slok
Limited macroeconomic impact of AI
- ▪Apollo Global Management economist Torsten Slok stated that the macroeconomic effects of artificial intelligence will remain limited as long as agentic AI and token spending stay confined to a small sector
- ▪Macroeconomic productivity growth shows no signs of significant increase from artificial intelligence adoption as of October 2026, according to Apollo Global Management analysis
Limitations of AI in business judgment
- ▪Apollo Global Management economist Torsten Slok stated that intelligence in business consists mostly of judgment and reputational risk factors that drive revenue growth and profit margins
- ▪Apollo Global Management economist Torsten Slok stated in an October 2026 report that artificial intelligence lacks understanding of accountability, trust, culture, unwritten rules, ethical trade-offs, and fairness
Corporate AI monetization challenges
- ▪Apollo Global Management Chief Economist Torsten Slok wrote in an October 24, 2026 economic report that artificial intelligence has delivered zero financial payoff to corporate America outside of the technology sector
- ▪Apollo Global Management Chief Economist Torsten Slok stated in an October 2026 report that corporate America will struggle to convert increasingly cheap artificial intelligence into higher revenue growth and profit margins
Market response to Meta AI Spending
- ▪Meta's credit risk gauge rose to a record high following the company's announcement during the week preceding October 25, 2026 that it would increase artificial intelligence spending
- ▪Meta announced during the week preceding October 25, 2026 that Meta intends to increase capital spending and bet more aggressively on artificial intelligence, causing Meta shares to fall
AI infrastructure spending risks
- ▪Data research firm Gartner estimated that over $3.5 trillion of artificial intelligence infrastructure spending could face impairment by 2030 if AI revenue fails to justify costs
- ▪Initial public offering plans for Australian data center firm Firmus Grid Ltd. collapsed after United States fund managers rejected its $30 billion valuation
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