Apollo’s Slok says US companies now treat AI spending as a cost, not growth
Torsten Slok, chief economist at Apollo Global Management, analyzed how the Magnificent Seven tech giants compare to the rest of the S&P 500 in AI outcomes. His analysis found that outside the tech sector, American corporations have seen no measurable financial payoff from AI investments, suggesting widespread hesitation to classify these expenditures as growth investments rather than operational costs.
Key points
- AI spending shows zero financial return for non-tech S&P 500 companies
- Companies treating AI as cost rather than growth investment
- Contrast between Magnificent Seven tech leaders and broader market
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