AI Business
5d ago
AI's Financial Impact on S&P 493 Companies Remains Limited Without Operational Changes
Nov 6, 2026
AI Summary
Apollo Global Management's chief economist highlights that AI has not yet generated financial benefits for most companies outside the tech sector. While AI adoption is increasing among workers, the lack of operational model changes is preventing widespread gains across organizations.
- Torsten Slok, chief economist at Apollo Global Management, states that AI has not delivered financial payoffs for companies outside the technology sector, with revenue per worker and profit margins remaining flat for most S&P 500 companies.
- The financial benefits of AI are currently concentrated in companies providing AI infrastructure, such as Azure and Google Cloud, rather than those utilizing the technology.
- Surveys indicate that about 40% of workers are using generative AI, but the gains are not translating into overall company performance due to unchanged core operating models.
- For companies to realize AI benefits, Slok suggests that CEOs must take ownership of AI initiatives, identify key workflows to improve, and redesign processes to integrate AI effectively.
- The implementation of AI is described as a complex task that involves more than just technology; it requires changes across all functions and core processes within an organization.
- Current AI spending is at 3.3% of revenue, up from 1.7% in late 2025, indicating that costs are rising without corresponding returns.
- Companies are cautioned against cutting staff prematurely, as this may not lead to the expected benefits from AI.
- Slok predicts that measurable AI benefits for the majority of companies in the S&P 493 may not be recognized until after 2027, emphasizing the need for thorough evaluation of AI costs and outcomes.
aibusinessceoslayoffss&p 493