Artificial Intelligence and Entrepreneurship in the Indian Context: Future Research Directions and Opportunities for New Business Models

Artificial Intelligence (AI) is emerging as a transformative force in entrepreneurship, particularly within emerging economies such as India, where rapid digitalization, a growing startup ecosystem, and policy-driven innovation are reshaping business practices. This paper examines the role of AI as a strategic enabler of entrepreneurial activities and its influence on the evolution of new and sustainable business models in the Indian context. Based on a systematic review of recent academic literature, industry reports, and empirical studies published over the last five years, the study analyzes how AI technologies—including machine learning, predictive analytics, natural language processing, and automation—support opportunity identification, decision-making, operational efficiency, and risk management among startups and micro, small, and medium enterprises (MSMEs). The findings indicate that AI adoption enhances entrepreneurial performance by enabling data-driven market insights, customer personalization, cost optimization, and scalability, thereby helping Indian enterprises overcome challenges related to resource constraints and market uncertainty. However, the study also identifies key concerns associated with AI integration, such as data privacy risks, ethical issues, workforce displacement, and digital skill gaps. The paper emphasizes the need for responsible AI governance, skill development, and supportive policy frameworks to ensure inclusive and sustainable entrepreneurial growth. The study contributes to existing literature by offering an India-centric perspective on AI-enabled entrepreneurship and outlining future research and policy directions.