Apollo says AI has delivered 'zero financial payoff' outside the tech industry
Apollo Global Management reports that AI investment has failed to provide a financial payoff for most companies outside of the tech sector. The firm suggests that corporate spending on AI is increasingly viewed as a cost center rather than a growth driver.
Why it matters
This analysis challenges the prevailing narrative of universal AI-driven productivity gains and highlights a potential cooling of corporate AI spending.
One of the world's largest investment firms isn't bullish on AI. Michael M. Santiago/Getty Images Only tech companies are seeing growth from the AI boom, Apollo Global Management says. Apollo says that though some big companies are spending big on AI, they may soon pull back. Corporate America is starting to see AI spending not as a source of growth, but as a cost center. One of the world's largest investment firms says that only tech companies are getting a share of the AI pie . In an economic analysis published on Saturday, Apollo Global Management said that while the Magnificent Seven — a group of established tech companies that includes Nvidia and Meta — are seeing revenue growth during the AI boom, this growth isn't being shared by other industries.
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