Harnessing Artificial Intelligence for New Business Development: A Study of Malaysian Entrepreneurial Students

This research explores the use of artificial intelligence (AI) in the new business development of entrepreneurial students in Malaysia. The study investigates the effects of AI-powered automation, AI-facilitated customer engagement, and AI-fueled innovation on business performance, with entrepreneurial self-efficacy as a mediating factor. A structured questionnaire using Likert scale items was administered to entrepreneurial students in four public sector universities in Malaysia. Data were analyzed using SPSS version 29 and Smart PLS 4, including regression analysis and mediation testing. The results indicate that artificial intelligence positively impacts overall business performance through data-driven improvement of company efficiency, customer relations and innovation, and that entrepreneurial self-efficacy mediates these relationships. The study adds to the literature on Class entrepreneurship by incorporating AI adoption as one of the dimensions of new ventures. In continuation of this, the paper’s contribution teaches educationist, policymakers and business incubators about how AI integration can be introduced in academic programs centered on entrepreneurship over the existing lean startup model. The purpose of this paper is to develop a framework of AI in entrepreneurship literature and provide future research directions to broaden the knowledge of the phenomenon concerning emerging markets.