Artificial intelligence and entrepreneurial ecosystems: understanding the implications of algorithmic decision-making for startup communities

Abstract

Purpose Entrepreneurs are increasingly relying on artificial intelligence (AI) to assist in creating and scaling new ventures. Research on entrepreneurs’ use of AI algorithms (machine learning, natural language processing, artificial neural networks) has focused on the intra-organizational implications of AI. The purpose of this paper is to explore how entrepreneurs’ adoption of AI influences their inter- and meta-organizational relationships. Design/methodology/approach To address the limited understanding of the consequences of AI for communities of entrepreneurs, this paper develops a theory to explain how AI algorithms influence the micro (entrepreneur) and macro (system) dynamics of entrepreneurial ecosystems. Findings The theory’s main insight is that substituting AI for entrepreneurial ecosystem interactions influences not only entrepreneurs’ pursuit of opportunities but also the coordination of their local entrepreneurial ecosystems. Originality/value The theory contributes by drawing attention to the inter-organizational implications of AI, explaining how the decision to substitute AI for human interactions is a micro-foundation of ecosystems, and motivating a research agenda at the intersection of AI and entrepreneurial ecosystems.