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Despite massive investments and widespread hype around AI, the technology has delivered zero financial payoff to most of corporate America. (www.apollo.com)
submitted 2 weeks ago by to c/futurology@futurology.today
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AI does not understand accountability, trust, culture, unwritten rules, ethical trade-offs or fairness, all of which shape reputational risk and ultimately drive revenue growth and profit margins.

The bottom line is that the AI story will be decided in the S&P 493, not the Mag 7, and so far, there is no evidence that revenue growth or margins are improving outside the tech sector.

This matters, as its the assumption the opposite will be true, that is driving the AI stock market bubble.

I've no doubt about AI's ultimate revolutionary potential, but I strongly suspect it will all happen in a post-AI bubble crash world.

No Signs of AI Payoff Outside the Tech Sector

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104
No Signs of AI Payoff Outside the Tech Sector (www.apollo.com)
submitted 2 weeks ago by to c/technology@lemmy.world
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No signs of AI payoff outside the tech sector (www.apollo.com)
submitted 2 weeks ago by to c/economics@lemmy.world
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Despite massive investments and widespread hype around artificial intelligence, the technology has delivered zero financial payoff to corporate America outside of tech.

Revenue per worker is rising for the Mag 7 but is flat for the S&P 493. Profit margins are rising for the Mag 7 but are flat for the S&P 493.

And there are still no signs of AI boosting productivity growth. With no impact on the bottom line, mainstream corporate America is pulling back and starting to view token spending not as a source of growth but as a cost center that weighs on margins.

17
No Signs of AI Payoff Outside the Tech Sector (www.apollo.com)
submitted 2 weeks ago by [B] to c/hackernews@lemmy.bestiver.se
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No Signs of AI Payoff Outside the Tech Sector (www.apollo.com)
submitted 2 weeks ago by to c/tech@piefed.world
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