ai and ml

The Magnificent Seven are galloping off with the profits, while the rest of the S&P 500 see no benefit, claims Apollo

AI has yet to deliver any financial payoff to US businesses outside of the tech sector, according to investment biz Apollo Global Management.

The global asset firm made the claim in a posting to its Daily Spark blog that features analysis on the US economy and capital markets. It says corporate America is starting to view token spending not as a source of growth, but rather as a cost center that weighs on company margins.

Apollo’s chief economist Torsten Slok says that revenue per worker may be rising for the so-called "Magnificent Seven" tech firms, which includes the hyperscalers plus Apple, Nvidia and Tesla, but this isn't the case for the rest of the S&P 500 businesses.

The same goes for profit margins, and for AI boosting corporate productivity growth, he adds, posting charts to back up these claims.

Apollo's assertion has met with pushback from some, who commented on…