Author(s): Rubi, Dr. Kapil Malhotra, Anamica Maan, Sushma Yadav

Abstract: This research integrates the latest literature to decode the role of Artificial Intelligence (AI) in ensuring the success, sustainability, and innovation of startups. A structured literature review was performed to examine the latest empirical and conceptual research on AI-powered startups and entrepreneurial ecosystems. The results show that AI improves the survival rate of startups by reducing risk and enhancing decision-making accuracy. Proprietary data, AI-related human capital, and founders’ experience are key factors that improve funding and performance. AI adoption improves operational efficiency, agility, and innovation, while responsible AI adoption enhances stakeholder trust and sustainability. Moreover, technological agglomeration and regulatory environments strongly influence the formation and scalability of AI-powered startups. This research emphasizes that successful AI entrepreneurship requires not only technological adoption but also human capital, governance, and ecosystem readiness. Policymakers and startup entrepreneurs must, therefore, consider the technological, institutional, and ethical aspects of AI entrepreneurship to ensure sustainable and competitive AI-powered startups.

Keywords: Artificial Intelligence, AI-Powered Startups, Entrepreneurial Ecosystems, Sustainable Innovation, Responsible AI Governance

Article Info: Received: 25 Nov 2025; Received in revised form: 23 Dec 2025; Accepted: 26 Dec 2025; Available online: 31 Dec 2025

DOI: 10.22161/ijels.106.81