Generative AI use in entrepreneurship: An integrative review and the Empowerment–Entrapment Framework

Abstract Research Summary Despite the growing use of generative artificial intelligence (GenAI) in entrepreneurship, research on its impact remains fragmented. To address this limitation, we provide an integrative, entrepreneur‐centered review of how GenAI influences entrepreneurs at each stage of the entrepreneurial process: (1) opportunity recognition and ideation, (2) opportunity evaluation and commitment, (3) resource assembly and mobilization, and (4) venture launch and growth. Based on our review, we propose the Empowerment–Entrapment Framework, which not only catalogs GenAI's benefits and costs throughout the entrepreneurial process but also identifies potential trade‐offs underlying GenAI's double‐edged role. For example, GenAI may improve venture idea quality yet produce hallucinations and biases; boost entrepreneurial self‐efficacy yet heighten overconfidence; increase functional breadth and self‐sufficiency yet reduce prosociality; and enhance productivity yet diminish cognitive engagement, learning, and memory. We also identify features of GenAI that underlie these empowering and entrapping effects. Moreover, we explore boundary conditions that moderate GenAI's effects, including entrepreneurs' expertise, approaches to GenAI use, and personal traits and values. Beyond these theoretical contributions, our review and framework offer practical guidance for entrepreneurs seeking to use GenAI strategically while managing its risks. Managerial Summary We review how GenAI influences entrepreneurs at each stage of the entrepreneurial process: opportunity recognition and ideation, opportunity evaluation and commitment, resource assembly and mobilization, and venture launch and growth. Based on this review, we propose the Empowerment–Entrapment Framework to help entrepreneurs understand GenAI's trade‐offs at each stage. The future of entrepreneurship will depend less on whether entrepreneurs use GenAI than on how they use it. Used thoughtfully, GenAI may empower entrepreneurs by expanding their capabilities to engage in entrepreneurial activities. Used uncritically, GenAI may entrap entrepreneurs by restricting or eroding those capabilities. Entrepreneurs should therefore verify what GenAI produces, calibrate GenAI use to their expertise and task demands, and decide which tasks to delegate to GenAI while retaining human judgment for consequential decisions.