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Big Tech is cashing in on AI while the rest of corporate America sees no financial returns
Apollo data shows the Magnificent Seven widening their revenue-per-employee lead over the S&P 493 between 2019 and 2026, highlighting the growing productivity gap between Big Tech and the broader market.
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AI spending is generating revenue for technology providers, but most other S&P 500 companies have yet to show comparable gains in productivity or profit margins, a report by Apollo’s Daily Spark analysis has shown.
Artificial intelligence has helped fuel a boom in technology spending, but the financial benefits remain difficult to spot across much of corporate America. Apollo Global Management chief economist Torsten Slok said on October 24 that revenue per worker and profit margins were rising for the Magnificent Seven technology stocks while remaining flat across the other 493 companies in the S&P 500.
Notably, Slok’s analysis found no clear evidence that AI is boosting productivity growth, despite heavy investment in the technology. Revenue per worker and profit margins have risen among the Magnificent Seven but remain flat across the other 493 companies in the S&P 500, according to the report. “Despite massive investments and widespread hype around artificial intelligence, the technology has delivered zero financial payoff to corporate America outside of tech,” Slok wrote.
Running AI models at scale can quickly drive up costs since many providers charge by token usage, so bills climb as employees make more requests or AI agents process data and handle increasingly complex tasks. Slok said mainstream companies were beginning to view token spending as a cost center rather than a source of growth. Venture capital-backed businesses are spending more on tokens, he noted, while established companies have less incentive to pay for the newest models if cheaper alternatives can do the job.
That creates a problem for AI providers hoping to turn growing adoption into a lasting revenue stream. Selling more computing power and model access can boost suppliers’ sales, but customers need to see corresponding gains in productivity, revenue or operating costs to keep spending at the same pace. Moreover, if AI expenses rise without a measurable improvement in business performance, the additional spending could weigh on margins.
“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.” Slok added. “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.”
Slok’s analysis also points to a broader limitation: AI adoption remains concentrated among a relatively small group of companies. Unless usage spreads across more industries and produces measurable results, the technology’s effect on the wider economy could remain limited.
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