Corporate Profitability

Apollo Economist: AI Boom Benefits Only Seven Firms, Leaving Broader Economy Stagnant

Apollo Global Management chief economist Torsten Slok argues that the artificial intelligence revolution has failed to generate financial returns for the broader U.S. economy. While the 'Magnificent Seven' tech giants see rising revenue and margins, the remaining 493 companies in the S&P 500 show no improvement in productivity or profitability. Slok contends that mainstream corporations are now treating AI token costs as a burden rather than a growth driver, suggesting the macroeconomic impact of AI remains limited to a narrow slice of the market.