#artificialintelligence

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Zhi Zhu 🕸️@ZhiZhu@newsie.social

"Despite massive investments & widespread hype around , the technology has delivered zero financial payoff to corporate America outside of tech...

there are still no signs of AI boosting productivity growth... With no impact on the bottom line, mainstream corporate America is pulling back & starting to view token spending not as a source of growth but as a cost center that weighs on margins."
apollo.com/wealth/insights-new

ht: @pluralistic

Headline on left, and text from article on right. Headline: Macroeconomic Indicators & Trends October 24, 2026 No Signs of AI Payoff Outside the Tech Sector by Torsten Slok Partner, Chief Economist Text: 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. The question looking ahead is whether, even as models become commoditized, mainstream corporate America can turn increasingly cheap intelligence into higher revenue growth and higher profit margins. That may be harder than it sounds. AI may be a great calculator, but in business, intelligence is mostly judgme