At the SXSW conference in Austin, Texas, tech investor and entrepreneur Mark Cuban shared his thoughts on the role of artificial intelligence (AI) in helping small businesses outperform their competition. Cuban emphasized that AI is not the answer in itself, but rather a tool that can aid entrepreneurs in various aspects of their business.

According to Cuban, entrepreneurs should spend "every waking minute learning about AI" due to its vast potential. He highlighted the rapid changes in the field, making it essential for new businesses to stay up-to-date. Cuban noted that it's easier for startups to integrate AI compared to established businesses, as they can build from the ground up.

The entrepreneur pointed out that starting a business has become more accessible, with the cost of a PC decreasing from $5,000 to just a laptop and internet connection. This democratization of access has enabled entrepreneurs to tap into AI-powered tools, such as Perplexity, Anthropic Claude, ChatGPT, and Gemini, which can serve as virtual mentors and experts.

While Cuban acknowledged that AI models can make mistakes and hallucinate, he argued that human mentors and experts also don't always get it right. AI can help entrepreneurs understand what they don't know and assist in tasks like research, emails, and sales calls. However, Cuban cautioned against overreliance on AI, emphasizing that it's a tool, not the answer.

In creative fields, where AI is increasingly being used, Cuban stressed the importance of human creativity. He noted that AI can generate scripts, but it doesn't know a good story from a bad one. Similarly, AI-generated videos may not be of high quality. Cuban emphasized that AI can amplify human skills, but it's up to entrepreneurs to use it effectively.

The implications of Cuban's statements are significant, as small businesses and entrepreneurs look to leverage AI to gain a competitive edge. By recognizing AI as a tool rather than the solution, entrepreneurs can focus on developing their skills and creativity, while using AI to augment their abilities. As Cuban aptly put it, "Whatever skills you have, AI can amplify them. But not using it means somebody else is going to be amplifying their skills — and that could be the difference between getting ahead of you or not."

In conclusion, Mark Cuban's insights at SXSW serve as a reminder that AI is a powerful tool that can aid entrepreneurs, but it's not a replacement for human creativity, skills, and expertise. By striking a balance between technology and human ingenuity, small businesses can outperform their competition and thrive in an increasingly AI-driven landscape.