Beyond Digital Tools: Ai as a Psychological Catalyst Reshaping Entrepreneurial Self-Efficacy in an Era of Uncertainty

Abstract

This paper redefines Artificial Intelligence (AI) in entrepreneurship beyond operational efficiency, emphasizing its psychological impact on entrepreneurial self-efficacy (ESE). Using social cognitive theory, we identify AI’s role as a psychological catalyst through democratizing mastery experiences, algorithmic validation, and altered risk perception, particularly for marginalized entrepreneurs. We critique technological determinism, exposing tensions such as AI’s democratizing potential versus the digital divide, and enhanced confidence versus overconfidence. Global case studies reveal contextual variations in AI’s effects. Proposing experimental and longitudinal research, we advocate for nuanced frameworks to harness AI’s potential while addressing dependency and fostering inclusive entrepreneurship.

Keywords: Artificial Intelligence, Entrepreneurial Self-Efficacy, Psychological Catalyst, Digital Divide, Social Cognitive Theory