Artificial Intelligence and Entrepreneurship
1T. GaneshDas, 2 ShaikAfreen Begum
1Associate Professor, Shadan Institute of Management Studies,
Mail id: Shashu2004@gmail.com
2 Student, Shadan Institute of Management Studies,
Mail id: shaikafreenbegum341912345@gmail.com
Abstract
Recent advances in artificial intelligence (AI) have positioned the global economy at the cusp of transformative technological change, presenting both unprecedented opportunities and complex challenges for entrepreneurship. This paper surveys the rapidly expanding body of literature examining the relationship between AI and entrepreneurial activity, offering a comprehensive reference for scholars in entrepreneurship and related fields. The review begins by critically examining existing definitions of AI, highlighting how conceptual ambiguity and overly broad operationalization in empirical research may obscure a clear understanding of AI’s entrepreneurial impacts. Building on this foundation, the paper synthesizes theoretical and empirical insights on the influence of AI on entrepreneurial opportunity recognition, decision-making under uncertainty, technology adoption by startups, entry barriers, and firm performance. Drawing on empirical evidence from the German Socio-Economic Panel, the study demonstrates that entrepreneurs—particularly those employing workers—exhibit significantly higher awareness and usage of AI technologies than paid employees. The analysis further explores indirect effects of AI on entrepreneurship through changes in local and sectoral labor markets. Evidence suggests that automation-oriented AI tends to increase necessity-driven entrepreneurship, whereas AI that augments or transforms jobs fosters opportunity-based entrepreneurial activity. Additionally, AI reshapes regional entrepreneurial ecosystems by reconfiguring existing elements, generating new processes, and potentially diminishing the importance of geographical proximity. Finally, the paper examines the implications of AI regulation for entrepreneurship, with particular reference to the European Union’s data protection and AI governance frameworks. The study concludes by outlining key implications for future entrepreneurship research and policy formulation.
Keywords: Artificial Intelligence (AI), Entrepreneurial Decision-Making, AI Adoption, Entrepreneurial Performance
