Apollo's Torsten Slok sees zero AI payoff outside the Magnificent 7

Apollo Global Management Chief Economist Torsten Slok determined that AI has boosted revenue and margins only for the Magnificent 7, while the rest of corporate America has seen no financial benefit. He notes that other S&P 500 companies have flat revenue per worker and flat profit margins with no increase in productivity. Slok put out the note, “No Signs of AI Payoff Outside the Tech Sector,” Saturday in Apollo’s Daily Spark. Top 10% of firms account for 99.5% of inference spending Slok splits the index in two. The Magnificent 7 are Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla. The S&P 493 is everything else in the S&P 500. For the Mag 7, inflation-adjusted revenue per employee is up to about $780,000.

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