AI-Driven Entrepreneurial Innovation in Startups: A Conceptual Framework

Artificial Intelligence (AI) has become a transformative driver of entrepreneurial innovation, reshaping how startups create, deliver, and capture value.Beyond incremental improvements, AI enables the development of intelligent products, data-driven business models, and adaptive organizational processes. Startups, due to their agility and experimentation-oriented culture, are uniquely positioned to leverage AI’s disruptive potential. Yet, they face persistent barriers such as resource constraints, talent shortages, and ethical or regulatory challenges.This paper combines classical theories of innovation (creative destruction of Schumpeter, entrepreneurial opportunities of Shane and Venkataraman) and modern theories (disruptive innovation of Christensen, dynamic capabilities of Teece, digital entrepreneurship of Nambisan, entrepreneurial ecosystem of Autio and collaborative intelligence of Wilson and Daugherty) to propose an integrative conceptual framework. The model conceptualises AI as both a source of entrepreneurial opportunities as well as a source of iterative learning and organisational renewal.By connecting the research fields of entrepreneurship and digital technology, this study contributes to the theoretical knowledge about AI-driven innovation and to practical knowledge for entrepreneurs, investors and policymakers aiming to promote responsible and sustainable AI adoption in startups.