Private equity giant: AI payoff strictly limited to Big Tech

Apollo Global Management says AI has so far delivered little financial benefit to US businesses outside the leading technology companies. Its chief economist argues that rising AI costs are weighing on company margins, raising doubts about whether widespread adoption will translate into stronger growth and profits.

Apollo’s analysis says revenue per worker, profit margins and productivity have improved for the “Magnificent Seven” tech firms, but not for the rest of the S&P 500. The claim has drawn disagreement, and some compare the delayed payoff to computers, whose productivity gains took years to appear. Reports from PwC and Deloitte also find limited returns for most businesses, while McKinsey says few companies report an earnings boost. Apollo further points to slowing growth in token spending and questions whether investment in ever-larger data centres can earn adequate returns.