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Billionaire Mark Cuban issues a stark warning: businesses must master AI or face failure. He emphasizes understanding AI's nuances, not treating it as interchangeable. Cuban likens AI to a savant remembering everything but lacking true understanding. He also highlights critical intellectual property risks, stating data is now more valuable than gold, urging companies to protect their information from AI harvesting.
Billionaire investor Mark Cuban has a stark warning for business leaders: embrace AI the right way, or prepare to fail. Speaking on a call with Clipbook founder Adam Joseph, whose startup secured a seven-figure investment from Cuban, the "Shark Tank" star outlined how companies can succeed or stumble in the AI era."There's going to be two types of companies: those who are great at AI, and everybody else," Cuban said, according to Business Insider. "And the 'everybody else' is going to fail because AI is such a transformative tool." The celebrity entrepreneur stressed that CEOs need to understand every nuance of new AI tools as they emerge, rather than treating them as interchangeable solutions.
AI is 'stupid' but remembers everything
Cuban offered a paradoxical take on artificial intelligence itself.
"AI is stupid," he said. "But it's somebody who's a savant that remembers everything." He compared AI chatbots to people with photographic memories—capable of instantly recalling and processing massive amounts of information, but not necessarily understanding context or creativity.Despite the technology being around for years, Cuban believes we're still "in the first inning of the first preseason game" of the AI revolution.
He cautioned that businesses misusing AI could turn helpful tools into expensive distractions, particularly when employees use standard versions like ChatGPT that might compromise sensitive company information.
Protect your intellectual property or lose it
The billionaire also warned about intellectual property risks in the AI age. Companies that previously posted everything online to showcase expertise must now be careful, as web-scraping chatbots can harvest that data for free.
"Companies are learning now that their IP is incredibly valuable," Cuban told Joseph, according to Yahoo Finance.Cuban emphasized that in an AI-driven world, data and information have become more valuable than gold or oil. Academics and researchers must also rethink the traditional "publish or perish" mindset, he added, since sharing findings openly could simply train competitors' AI models. At SXSW, Cuban reinforced that AI should amplify existing skills, not replace human judgment and creativity.
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