This analysis is definitely a bit sortsighted. It's like saying in the middle of the Industrial Revolution that steam machines are not resulting in higher payoff to companies outside of manufacturing. It's a bit non-sense, to say the least...
"Despite massive investments and widespread hype around artificial intelligence, the technology has delivered zero financial payoff to corporate America outside of tech. Revenue per worker is rising for the Mag 7 but is flat for the S&P 493, see the first chart below. Profit margins are rising for the Mag 7 but are flat for the S&P 493, see the second chart below. And there are still no signs of AI boosting productivity growth, see the third chart below. With no impact on the bottom line, 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.
VC-backed companies are spending more and more on tokens, but mainstream corporate America does not need the latest model and is unwilling to pay for it. 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, see the fourth and fifth charts below."
https://www.apollo.com/wealth/insights-news/insights/daily-spark/no-signs-of-ai-payoff-outside-the-tech-sector
#AI #GenerativeAI #LLMs #AIBubble
Miguel Afonso Caetano 🦾 🌹
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2026-10-25 13:25:58 UTC
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2026-10-25 13:25:58 UTCEvent JSON
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"content": "This analysis is definitely a bit sortsighted. It's like saying in the middle of the Industrial Revolution that steam machines are not resulting in higher payoff to companies outside of manufacturing. It's a bit non-sense, to say the least... \n\n\"Despite massive investments and widespread hype around artificial intelligence, the technology has delivered zero financial payoff to corporate America outside of tech. Revenue per worker is rising for the Mag 7 but is flat for the S\u0026P 493, see the first chart below. Profit margins are rising for the Mag 7 but are flat for the S\u0026P 493, see the second chart below. And there are still no signs of AI boosting productivity growth, see the third chart below. With no impact on the bottom line, 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.\n\nVC-backed companies are spending more and more on tokens, but mainstream corporate America does not need the latest model and is unwilling to pay for it. 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, see the fourth and fifth charts below.\"\n\nhttps://www.apollo.com/wealth/insights-news/insights/daily-spark/no-signs-of-ai-payoff-outside-the-tech-sector\n\n#AI #GenerativeAI #LLMs #AIBubble",
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