Artificial intelligence, credit constraints, and household entrepreneurship

This study investigates the impact of artificial intelligence (AI) on household entrepreneurship using China Family Panel Studies data. We provide novel micro-level evidence that AI significantly increases entrepreneurial probability, particularly for survival-oriented businesses. Our primary contribution lies in identifying the relaxation of credit constraints as the central driving mechanism, positioning AI as a critical resource compensator for disadvantaged groups. The effect is more pronounced among low-income and low-education populations, highlighting AI’s role in fostering inclusive growth. These findings offer vital empirical evidence for optimizing digital entrepreneurship and financial inclusion policies.