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

Responding to the surging but largely invisible use of generative AI in entrepreneurial framing, I advance Ghost Framing Theory (GFT) to explain how hybrid founder- and investor-genAI ensembles co-produce, contest, and recalibrate resonance in the rhetorical legitimation of new ventures. Building on scholarship in framing, micro-level legitimacy judgments, and sociomaterial affordances, I identify genAI rhetorical affordances (generativeness, extreme combinatorics, tone repertoire, velocity/energy and shared substratum) and theorize a recursive/iterative process model (ghost pitching, ghost screening, ghost relationship-building), configuring emergent resonance and legitimation. GFT builds new rhetorical framing theory for the age of genAI, connects research on human-AI collaboration with cultural entrepreneurship and extends affordance theory into multi-actor scenarios where affordance transitivity and visibility emerge as key considerations.

Recent advances in generative artificial intelligence (AI) are reshaping who enters entrepreneurship, but not who reaches the top of the quality distribution. Using data on over 160,000 product launches on Product Hunt, we find that entrepreneurial entry increased sharply following the public release of ChatGPT-3.5, driven disproportionately by solo entrepreneurs. This shift toward solo entry is particularly pronounced in categories that historically favored team-based ventures. However, much of this growth reflects low-commitment, experimental entry and does not translate into greater representation among the highest-quality outcomes. Team-based ventures are increasingly dominant in the top tiers of platform rankings. These findings suggest that generative AI lowers barriers to solo entrepreneurship while reinforcing team-based advantages.

Entrepreneurial cognition is a foundation of entrepreneurship research. Yet the growing involvement of large language models (LLMs) in entrepreneurial work extends the cognition question beyond human actors to systems whose internal representations remain largely unexplored. We introduce artificial entrepreneurial cognition, the functional organisation of entrepreneurship-relevant representations and computations inside artificial intelligence (AI) systems. We bring mechanistic interpretability into entrepreneurship research through representation engineering. Focusing on opportunity recognition (OR), we construct 636 matched OR-present and OR-absent scenario pairs and recover an OR direction in Llama 3.1 8B-Instruct. Rather than infer the construct from outputs, we intervene directly on this direction, steering the model up and down along what we call the opportunity recognition dial, and its opportunity judgments shift with it. To our knowledge, this is the first causal intervention on an internal representation of an entrepreneurship construct inside an LLM. Held-out tests, lexical and topical controls, behavioural ablation, and geometric comparisons show that the direction is recoverable, consequential, and distinct from the opportunity evaluation and exploitation directions, although steering it also shifts judgments about these neighbouring stages. Recovery, signed steering, and geometric separation hold across four additional LLMs spanning different scales and families. These results give the contested distinction between opportunity recognition and evaluation a concrete representational form inside AI systems. More broadly, they establish internal representations as a new object of entrepreneurship inquiry and show how entrepreneurship theory can guide their identification, causal manipulation, and interpretation.