Apollo Global Management, a large private equity firm, said in a report on Oct. 24 that massive investment has poured into AI, but U.S. companies outside the tech sector have not yet produced any financial results.

Apollo said the Magnificent 7 (M7), a term for seven large technology stocks that are driving the U.S. market, are seeing both revenue per employee and profit margins rise. By contrast, the 493 companies in the S&P 500 excluding the M7 are flat on both measures.

There is also no sign yet that AI has lifted productivity growth. The report concluded that AI's success will be decided not by the M7 but by the other 493 companies, and that so far there is no evidence that revenue growth or profit margins have improved outside the tech sector.

With no improvement in profitability, some companies are cutting AI spending. More are viewing token costs not as a growth engine but as an expense that eats into profit margins.

The report said companies backed by venture capital continue to increase token spending, while other companies see no need to use the latest models and are unwilling to pay high prices.

The report also assessed that as long as agent AI and token spending remain confined to parts of the economy, AI's impact on the macroeconomy will be very limited.

Even if model prices fall, it is unclear whether that will translate into revenue growth and improved profit margins for companies in general. The report said it could be a more difficult task than expected.

The report said: "In business, intelligence is mostly judgment. Judgment depends on context, and the answer changes depending on which person or which model you ask. AI does not understand accountability, trust, organizational culture, unwritten rules, ethical choices, or fairness." It stressed: "These factors protect or destroy corporate reputation, and ultimately determine revenue and profits."