AI's financial impact limited to tech sector

An analysis by Apollo Global Management shows that artificial intelligence has not generated measurable financial gains for American businesses outside the technology sector. Despite significant investments and media attention, the technology has not led to financial returns for most companies beyond tech giants.

Productivity growth remains flat

Hourly labor productivity has hovered around 2 to 2.5% since 2019, with no notable acceleration despite hundreds of billions invested in artificial intelligence infrastructure. Data from the U.S. Bureau of Labor Statistics show no clear improvement linked to the widespread use of generative AI in businesses.

Total factor productivity stagnates

Total factor productivity (TFP), which measures the efficiency of capital and labor combined, has stagnated near zero or even shown slightly negative values according to the Federal Reserve Bank of San Francisco. This contrasts with historical major technological revolutions, which were marked by significant jumps in TFP.

Revenue per employee shows a divide

Revenue per employee is the first indicator of the economic divide. The seven major American technology companies saw their revenue per employee rise from $550,000 in 2022 to $800,000 in 2026, a 45% increase. Meanwhile, the other 493 companies in the S&P 500 have remained around $550,000 per employee since 2019.

Profit margins widen the gap

The profit margins of the Magnificent Seven now approach 30%, compared to 11% in 2015. The rest of the S&P 500 has remained between 9 and 10% since 2023, with no improvement despite the deployment of artificial intelligence. Torsten Slok notes that the future of AI will be determined by the S&P 493, not the Magnificent Seven.

Executives question AI value

A KPMG survey of 2,145 executives found that 49% have reduced, restricted, delayed, or suspended their AI agent deployments after realizing that the costs outweighed the value created. Only 7% report an established return on investment. Many companies now see AI token costs as a necessary expense rather than a growth opportunity.

AI spending highly concentrated

The Ramp AI Index reveals that 99.5% of model serving and inference expenses come from the top 10% of spending companies. Venture-backed companies are increasing their token budgets, while most of corporate America avoids paying for the latest AI models. Torsten Slok highlights that AI is good at calculation but lacks human judgment, which is crucial for business decisions.

Economic implications of AI concentration

The concentration of AI gains among seven technology companies raises a major question: are massive investments in AI infrastructure justifiable if 99% of companies see no measurable benefit? The analysis suggests the narrative of a generalized economic revolution is more myth than reality, prompting a reevaluation of AI's economic role beyond the tech sector.