Generative AI Use in Entrepreneurship: An Integrative Review and an Empowerment-Entrapment Framework

arXiv:2604.02567v2 Announce Type: replace-cross Abstract: Despite the growing use of generative artificial intelligence (GenAI) in entrepreneurship, research on its impact remains fragmented. To address this limitation, we provide an integrative, entrepreneur-centered review of how GenAI influences entrepreneurs at each stage of the entrepreneurial process: (1) opportunity recognition and ideation, (2) opportunity evaluation and commitment, (3) resource assembly and mobilization, and (4) venture launch and growth. Based on our review, we propose the Empowerment-Entrapment Framework, which not only catalogs GenAI's benefits and costs throughout the entrepreneurial process, but also identifies potential trade-offs underlying GenAI's double-edged role. For example, GenAI may improve venture idea quality yet produce hallucinations and biases; boost entrepreneurial self-efficacy yet heighten overconfidence; increase functional breadth and self-sufficiency yet reduce prosociality; and enhance productivity yet diminish cognitive engagement, learning, and memory. We also identify features of GenAI that underlie these empowering and entrapping effects. Moreover, we explore boundary conditions that moderate GenAI's effects, including entrepreneurs' expertise, approaches to using GenAI, and personal traits and values. Beyond these theoretical contributions, our review and framework offer practical guidance for entrepreneurs seeking to use GenAI strategically while managing its risks.

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Source: arXiv cs.AI | 2026-08-21