Pokemon Go may have sparked the world's craving for augmented reality, but billionaire Mark Cuban says the industry still has a long way to go. He's banking on machine learning as the next big breakthrough in technology.

"I think the grand slam is going to come from deep learning, machine learning," Cuban told "Mad Money" host Jim Cramer on Tuesday.

Cuban disclosed that he has investments in machine learning and deep learning because of the multitude of ways that the immense amount of data out there can be processed.

"With deep learning in particular, you process all that data and you look for not the 100 percent conclusion, but you look for the 51 percent, the 60 percent opportunities that could send you in a new direction. And I think that's why it's so big," Cuban said.

And while he thinks there is enough room for all of the major tech players like Facebook, Alphabet and Amazon to co-exist, the tough thing is that no one knows what the next big thing in technology is. Right now, executives are simply using their intuition to make moves in the space.

"I could argue for precision medicine. I could argue that's why they are all acquiring artificial intelligence, deep learning companies, right, because they don't know where it will take them," Cuban said.

The industry went through a period of time where it automated analog data, he added. Now it is headed down a path where it is automating automation, and that will change the way everything is done.

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