Abstract:
According to "Business Insider", Apollo Global Management, one of the world's largest investment companies, said that currently only technology companies have taken a share of the AI boom. Apollo Global Management pointed out in an economic analysis report released on Saturday that although the "Big Seven Technology" including Nvidia and Meta have achieved revenue growth during the AI boom, other industries have not shared this growth dividend.
AI does not seem to bring growth dividends to other industries
"Mainstream U.S. companies are reducing investment and beginning to view token spending as a cost center that drags down profit margins rather than a source of growth. Except for the technology industry, this technology has not brought any financial returns to U.S. companies." Apollo partner and chief economist Torsten Slok said in the report.
Through a series of charts, Slock analyzed three main indicators: revenue per employee, profit margins and productivity growth. These metrics surged significantly for tech companies, but not for regular companies.
Since 2022, per capita revenue at technology companies has soared, from $550,000 to nearly $800,000 currently. Meanwhile, this metric has changed little for other companies in the S&P 500, having hovered around $550,000 for the past seven years.
Similarly, profit margins for technology companies have climbed significantly since 2022, while profit margins for other companies have stagnated at around 10%.
Looking at the overall economy, AI has yet to significantly boost productivity growth as some optimists predicted.
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