On Monday, billionaire entrepreneur Mark Cuban warned that artificial intelligence (AI) is set to divide companies into winners and losers as CEOs struggle to understand how to measure its risks, benefits and real-world impact.

AI Creates Corporate Survival Gap

In a post on X, the billionaire entrepreneur said he is not concerned that AI itself is harmful or should be used less, arguing instead that it will become a defining factor in business survival.

"There are 2 types of companies. Those that are great at AI, and those who will go out of business," Cuban wrote.

He added that the real challenge lies with corporate leadership.

"A CEO is going to want to know what they can expect from AI. What can it not do. How does it compare to our existing scenarios," he said, noting that most executives are unlikely to understand the technical details of implementation.

Cuban also highlighted uncertainty around performance and risk.

He said leaders will need clarity on what AI can deliver "with 100pct certainty or with greater positive impact than current systems," as well as the risks involved in adoption.

"It is going to take a long time before CEOs know how to determine risk vs reward with AI," Cuban wrote, describing the situation as the "Innovator's AI Dilemma."

Cuban Warns Of Chaos, Others See Growth

On Sunday, Cuban warned that enterprise AI had become increasingly fragmented due to competing models from major tech firms.

He said "Every LLM is a walled garden" and predicted that enterprise AI would become "a mess" within five years as companies struggled with integration, adoption and consistency challenges.

Earlier, Kevin O'Leary said companies that failed to adopt AI risked falling behind competitors.

He said firms he was involved with had already used AI for marketing, content creation and customer acquisition, noting it had reduced costs while improving output and competitiveness.

Box Inc. (NYSE:BOX) CEO Aaron Levie offered a more optimistic view on workforce impact, saying AI had increased software engineer productivity and was likely to drive hiring rather than reduce jobs.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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