Billionaire investor Mark Cuban isn't mincing words about artificial intelligence. In a conversation with Clipbook founder Adam Joseph, Cuban delivered a characteristically blunt assessment: AI is "stupid," but it "remembers everything."

That paradox matters more than you might think. Cuban laid out a stark future for businesses: "There's going to be two types of companies: those who are great at AI, and everybody else." The "everybody else" category? They're headed for trouble, according to Cuban, who sees AI as genuinely transformative rather than just another tech buzzword.

Here's the nuance Cuban wants business leaders to grasp: AI can dramatically improve operations when implemented thoughtfully, but it can just as easily become an expensive mess if mishandled. "AI is stupid. But it's somebody who's a savant that remembers everything," he explained.

Cuban stressed that not all AI tools work the same way. Business leaders need to understand the differences between various platforms rather than treating them like interchangeable commodities. The technology has real limitations—AI tools can be confidently wrong, which creates its own risks.

There's also the intellectual property angle. Cuban warned companies to think carefully before sharing proprietary information online, where web-scraping chatbots might hoover it up for training data. In other words, posting your competitive advantages on the internet might mean handing them directly to your competitors' AI systems.

The bottom line: Companies that underestimate AI face disruption, but blindly implementing it without understanding its quirks won't save you either. It's not enough to just adopt AI—you need to use it intelligently.