More than a year into the artificial intelligence boom, the technology has failed to deliver measurable financial benefits to corporate America outside the tech sector, according to analysis from Apollo. While the Magnificent 7 tech companies have seen revenue per worker and profit margins rise, the S&P 493 non-tech companies show flat performance on both metrics.
Revenue per worker for the Mag 7 is climbing, but it remains unchanged for the broader market. Similarly, profit margins are expanding for the tech giants while staying flat for the rest of corporate America. Productivity growth data reveals no sign of AI-driven improvements across the economy.
With no visible impact on financial results, mainstream companies are shifting their perspective on AI spending. Rather than viewing AI investments as growth drivers, they increasingly treat token expenditures as cost centers that erode margins. This represents a significant change from the earlier optimism surrounding the technology.
Venture-backed firms continue to increase spending on AI models and tokens, but traditional corporate America is resisting premium pricing. According to Apollo, mainstream companies do not require the latest AI models and are unwilling to pay for cutting-edge versions. As long as advanced AI capabilities and associated token costs remain concentrated in a small slice of the economy, the broader macroeconomic effects of artificial intelligence will remain limited.
Looking forward, a critical question emerges: can mainstream corporate America convert increasingly inexpensive AI intelligence into higher revenue growth and improved profit margins? Apollo suggests this may prove more difficult than anticipated. While AI excels as a calculator, business success often depends on judgment—a capability shaped by context, human experience, and nuanced decision-making.
Crucially, AI lacks understanding of several factors central to business success: accountability, trust, organizational culture, unwritten rules, and ethical trade-offs. These elements drive reputational risk and ultimately shape revenue growth and profitability. According to Apollo’s analysis, the future of AI’s economic impact will be determined not by performance in the Mag 7, but by whether the S&P 493 can harness the technology to drive meaningful business results. So far, there is no evidence of improved revenue growth or margins outside the tech sector.
Key facts
- Revenue per worker is rising for the Mag 7 but flat for the S&P 493
- Profit margins are expanding for the Mag 7 but unchanged for the S&P 493
- No signs of AI boosting productivity growth across the economy
- Mainstream corporate America is treating AI spending as a cost center rather than a growth opportunity
- VC-backed companies continue increasing token spending while traditional corporations resist premium AI pricing