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

Researchers propose an Empowerment-Entrapment Framework showing how generative AI acts as a double-edged sword for entrepreneurs across all stages of the entrepreneurial process. While GenAI can improve venture ideas and boost productivity, it also introduces risks like hallucinations, overconfidence, and erosion of critical thinking skills.

• →GenAI impacts entrepreneurs across four key stages: opportunity recognition, evaluation, resource assembly, and venture launch.
• →The technology can improve venture idea quality but introduces hallucinations and training data biases.
• →GenAI boosts entrepreneurial self-efficacy but may heighten dangerous overconfidence levels.
• →While increasing functional breadth, GenAI usage can decrease important relational embeddedness for entrepreneurs.
• →Boundary conditions like metacognition and domain expertise shape the magnitude of GenAI's empowering and entrapping effects.