tspof on Nostr: Despite significant investments and hype around artificial intelligence (AI), AI has ...

Despite significant investments and hype around artificial intelligence (AI), AI has not yet delivered financial gains to corporate America outside the technology sector. According to Apollo's Chief Economist, revenue per worker and profit margins are increasing for the Mag 7 tech companies but remain flat for the broader S&P 493 companies. There is also no evidence of AI contributing to productivity growth in non-tech sectors. Mainstream corporations are beginning to view AI-related spending as a cost rather than a driver of growth. While VC-backed companies are increasing token expenditures, mainstream firms are reluctant to pay for the latest AI models. The economist notes that AI lacks understanding of key business factors like accountability, trust, culture, ethics, and fairness, which affect revenue and profits. The impact of AI will largely be determined by its adoption in the S&P 493, where so far, no improvement in revenue or margins has been observed.

Source: https://www.apollo.com/wealth/insights-news/insights/daily-spark/no-signs-of-ai-payoff-outside-the-tech-sector



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