Mark Cuban says AI is both 'stupid' and a make-or-break tool for businesses.

Mark Cuban told entrepreneurs that companies that use AI well will have a competitive edge while others risk failure, and he also warned that AI tools are mistake-prone, can be overconfident, and are not a cure-all.

Mark Cuban spoke with Clipbook founder Adam Joseph about how businesses should think about AI. He said firms that adopt and understand AI effectively will gain a major advantage, while those that do not may be disrupted. Cuban also emphasized that AI tools have limits, can make mistakes, and can present opaque or outdated information. Major tech companies are investing heavily in AI, and Cuban said it is still early to know who will emerge as the dominant platform. Key points: - Cuban said there will be two groups of companies: those that are great at AI and those that fall behind. - He described AI tools as mistake-prone and sometimes overly confident, noting chatbots can give inaccurate answers or cite faulty links. - Cuban said AI excels at recalling and aggregating large amounts of information quickly. - He warned about intellectual-property risks, including that posting work online can be used to train other models and that using standard public tools can expose sensitive company data. - Cuban said it is too early to tell which tech companies will become the primary AI destinations. Summary: Cuban's remarks underline a view that AI will reshape business competition and that firms are re-evaluating how they handle data and intellectual property. Which companies will lead in AI development is undetermined at this time.