Leveraging the potential: How founders are adopting generative AI for entrepreneurial tasks

Abstract

Generative AI applications (GenAI) has the potential to benefit early-phase ventures by lowering costs and time spent solving tasks. Despite its growing prominence, there's a gap in understanding how founders adopt and perceive this new technology. This research investigates whether founders perceive that GenAI truly is beneficial to their work. This is investigated through an abductive multiple-case study, leveraging thematic analysis of six semi-structured interviews and two collaborative workshops with founders of startups in Norway and South Africa. The study leverages Technological Adoption Model 3 (TAM3) as a theoretical lens. The aim is to answer whether founders perceive GenAI as useful, and to learn how and why they adopt the technology. I identify four key factors influencing the adoption and perceived usefulness of GenAI: Playfulness, Capability Awareness, Skill Level, and Subjective Norm. These findings largely align with the traditional TAM3 framework, with some exceptions. My findings indicate a specific form of computer anxiety directed towards AI, and social media seems to function as a subjective norm. Applying TAM3 reveals an adoption pattern where founders who enjoy using technology are more likely to adopt GenAI and find it useful for entrepreneurial tasks, mostly after gaining some experience with it and learning how to improve the output. When they become experienced, they find the technology to be very helpful. This research enhances our understanding of how GenAI can be effectively utilized by startups and may inspire founders to invest time in mastering this technology in situations where it suits their needs. However, further research is necessary to quantify the impact of GenAI adoption on entrepreneurial tasks, assess the significance of each influencing factor, distinguish between traditional computer anxiety and AI-specific computer anxiety, and further explore why some founders choose not to adopt these tools. This additional research will provide a more comprehensive view of the potential benefits and challenges associated with GenAI in entrepreneurial settings.