AI investments yield no measurable returns for most companies
Source: TechCrunch
An Apollo economist's analysis directly contradicts the venture-backed narrative that AI adoption automatically creates shareholder value. The current wave of enterprise AI spending appears driven by competitive fear and sunk-cost psychology rather than actual productivity gains. Companies are spending billions on AI infrastructure without clear ROI mechanisms, which will eventually force either genuine use-case innovation or a significant reallocation of tech budgets. Most organizations are buying AI as a defensive move or status symbol rather than solving specific, measurable business problems that justify the cost.