Apollo Report Finds No AI Productivity Gains Beyond Magnificent 7
Apollo Global Management's report says revenue per employee and margins are flat at the other 493 S&P 500 firms, and some are cutting AI spending.
Apollo Global Management published a report on October 24 finding no evidence so far that AI has raised productivity growth across the wider US stock market, according to digitaltoday.co.kr. The analysis looked at AI investment and corporate financial performance.
Apollo says revenue per employee and profit margins are rising for the Magnificent 7 large tech stocks. The other 493 companies in the S&P 500 show no improvement in either measure.
Some ordinary companies are cutting AI spending because they have not seen profitable improvement, the report finds. Companies backed by venture capital continue to increase token spending, while ordinary companies avoid paying high prices for the latest models.
Limited macroeconomic effect
The report concludes that AI's macroeconomic effect is limited as long as agent AI and token spending stay confined to part of the economy.
Quick answers
What did the Apollo Global Management report find about AI?
It found no evidence so far that AI has raised productivity growth, with revenue per employee and profit margins rising only at the Magnificent 7 and flat at the other 493 S&P 500 companies.
Why are some companies cutting AI spending?
According to the report, some ordinary companies are reducing AI spending because they lack profitable improvement, while venture-backed firms keep increasing token spending.