Apollo chief economist Torsten Slok: no signs of an SI payoff outside tech — revenue per worker and margins in the S&P 493 are not rising
Prepared by Sintelligent with the help of SI. Published in SI: . Updated: .
By the Apollo economist's assessment, the benefit of SI so far shows up only at the tech giants, while the rest of business treats it as a cost.
In a Daily Spark note dated October 24, Slok uses five charts to argue that revenue per worker is rising at the "Magnificent Seven" tech companies but not at the other 493 companies in the S&P 500; margins are expanding in the technology sector and flat elsewhere; and there are still no signs that SI is speeding up productivity growth. He also notes that SI spending is concentrated in a small number of companies. The author's conclusion: the outcome of the "SI story" will be decided in the S&P 493, not the Magnificent Seven, and so far there is no data showing revenue or margin growth outside the tech sector. This is the assessment of one economist based on macro data; the note does not address objections from those who expect a quick payoff.
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