Opinion: AI Has Yet to Deliver Returns for US Companies Outside the Tech Sector

Odaily Report: Apollo Global Management Chief Economist Torsten Slok stated that despite companies investing enormous sums in artificial intelligence, AI has yet to deliver any real returns for US companies outside the tech sector. Slok wrote: "Revenue per employee is rising at the Magnificent 7 tech giants, but for the other 493 companies in the S&P 500, this metric has remained flat." Corporate profit margins show the same pattern, and there are currently no signs that AI is driving productivity growth.

Slok said: "Mainstream US companies are pulling back on spending and beginning to view AI token consumption expenses as a cost center rather than a growth source, because these expenses are squeezing profit margins." As earnings season gets underway, investors are closely watching corporate AI spending and whether related investments can deliver expected returns. Last week, Meta was first among tech companies to report earnings-related developments, stating plans to bet more aggressively on AI and increase capital expenditure plans. This announcement rattled the market, causing Meta's stock price to fall and its credit risk indicators to hit an all-time high.