Apollo's Torsten Slok Says AI Has Produced No Profit Gains Outside Big Tech

Apollo Global Management chief economist Torsten Slok argued in an October 24, 2026 note that AI has not yet improved profits at large non-tech companies. Focusing on the S&P 493, the S&P 500 excluding Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla, Slok found profit margins and revenue per worker flat, with no evidence that AI is raising productivity. He says mainstream corporate America is pulling back, treating token spending as a cost center that squeezes margins rather than a growth engine. He also argues that macroeconomic effects will stay limited while agentic AI and token spending remain confined to a small part of the economy. A Above the Law post by Stephen Embry, who writes the TechLaw Crossroads blog, applies that argument to legal work. Embry contends that because law turns on judgment, which AI cannot supply, widespread AI use would do little to lower the value or cost of legal services, and clients have little reason to demand AI if it does not cut their costs. Embry is commenting on Slok's note, not reporting new facts.