AI-driven decision making on entrepreneurial scaling: Does digital literacy of the founder and entrepreneurial agility matter?

This study examines how artificial intelligence (AI)-driven decision making influences entrepreneurial scaling, highlighting the mediating role of entrepreneurial agility and the moderating effect of digital literacy. Using a survey approach, data were collected from 370 newly established businesses to test the proposed structural relationships. The results show that AI enhances scaling outcomes both directly and indirectly through agility, while the digital literacy of the founder strengthens entrepreneurial scaling and amplifies AI’s effect on growth. The study contributes to the digital entrepreneurship literature by integrating mechanisms of mediation and moderation into the AI–scaling nexus, highlighting the interplay between technological capabilities and organizational agility. Managerially, the findings suggest that entrepreneurs should complement AI adoption with the development of agility and digital skills. At the policy level, the results underscore the importance of digital training programs, incentives for AI adoption, and supportive infrastructure to enable entrepreneurs to leverage emerging technologies for sustainable growth and scaling.