No Signs of AI Payoff Outside the Tech Sector
Summary
The article argues that despite massive investments and hype around artificial intelligence, there is no financial payoff to corporate America outside of technology. Data shows revenue per worker rising for the Mag 7 but flat for the S&P 493, and profit margins rising for the Mag 7 but flat for the S&P 493. There are no signs of AI boosting productivity growth. Venture-backed token spending is common, but mainstream companies are not paying for the latest models. The analysis suggests macroeconomic effects of AI will be limited while token spending remains confined to a small part of the economy. The author questions whether commoditized AI can meaningfully raise revenue growth and margins, noting that AI is a calculator but does not handle accountability, trust, culture, or fairness. The bottom line: the AI story will be decided by the S&P 493, not the Mag 7, with no clear evidence of improved revenue or margins outside the tech sector.