Mitigating liabilities of foreignness in migrant entrepreneurship: The role of AI in building virtual embeddedness

This study explores how Generative Pretrained Transformer (GPT) Artificial Intelligence (AI) aids migrant entrepreneurs (MEs) in overcoming the social interactions' impact liabilities of foreignness has on their embeddedness and collaboration prospects within host business environments. Drawing upon a qualitative interpretivist approach, semi-structured interviews were conducted with 20 Bulgarian MEs in the UK actively using this technology. Thematic analysis of the collected data revealed that GPT AI serves as a critical tool for establishing virtual embeddedness, consequently reducing liabilities of foreignness in the host country. Addressing this issue from a micro-foundation’ perspective, the study reveals the systematic socio-structural mechanisms and the micro foundations they entail, emerging from MEs' use of GPT AI over three phases – calibrating, coordinating, and consolidating social interactions. By proposing a micro-foundations framework to explain the socio-interactional dynamics of MEs using GPT AI for virtual embeddedness, we respond to call for a deeper understanding of the modern factors (i.e., use of AI technology) influencing social embeddedness – particularly virtual such. • Introduces “hybrid embeddedness” to explain AI's role in migrant entrepreneurship. • Examines how GPT AI mitigates liabilities of foreignness in business operations. • Identifies AI-enabled strategies for social and virtual embeddedness integration. • Proposes a micro-foundational framework for AI-driven social interactions. • Highlights AI'S potential to enhance migrant entrepreneurs' network positioning