No Company Besides the Biggest Tech Giants Is Seeing Benefits From AI
looorg writes:
Despite massive investments and widespread hype around artificial intelligence, the technology has delivered zero financial payoff to corporate America outside of tech.
In the analysis published on Saturday, Apollo Global Management Inc. said that the "S&P 493," which refers to the S&P 500 minus technology firms Alphabet Inc., Amazon.com Inc., Apple Inc., Meta Platforms Inc., Microsoft Corp., Nvidia Corp. and Tesla Inc., has not yet benefited from its investments in AI.
... while the Magnificent Seven has seen real profits from AI, the profit margins and revenue per worker of other companies remains flat, with no evidence that the technology is enhancing productivity. "Mainstream corporate America is pulling back and starting to view token spending not as a source of growth but as a cost center that weighs on margins,"
"Mainstream corporate America does not need the latest model and is unwilling to pay for it," he wrote. "As long as agentic AI and token spending are confined to a small part of the economy, the macroeconomic effects of AI will be very limited."
More analysis pointing in the direction of that the main beneficiaries from the AI-revolution are a handful of companies. The rest are desperately trying to find profit in their massive investments. When there is a gold rush sell shovels and pans still appears to be the valid business strategy? How long will the keep investing for that ever elusive future payoff day? To deep in the hole to stop digging?
https://siliconangle.com/2026/10/25/apollo-analysis-shows-that-no-one-apart-from-the-biggest-tech-giants-is-seeing-any-real-benefits-from-ai/
https://www.apollo.com/wealth/insights-news/insights/daily-spark/no-signs-of-ai-payoff-outside-the-tech-sector
[Ed's Note: Title corrected-20261029:10:57Z]
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