Apollo’s chief economist, Torsten Slok, has cautioned that profit improvements driven by artificial intelligence outside the technology sector could take much longer to materialize than Wall Street currently anticipates. According to The Decoder, Slok does not expect AI-related margin gains in regulated industries such as healthcare, banking, and pharmaceuticals anytime soon.
Slok highlighted that while AI-driven profit boosts in tech might appear quickly, sectors like healthcare and banking could face delays stretching up to five years. This contrasts sharply with some market expectations of gains within just a few months.
For Japanese investors, this outlook suggests a more cautious approach toward AI’s impact on traditional industries, especially given Japan’s strong presence in regulated sectors like pharma and finance.