The Use of Artificial Intelligence by Young Entrepreneurs in the Republic of Croatia

Interdisciplinary Description of Complex Systems 22(6), 656-665, 2024 THE USE OF ARTIFICIAL INTELLIGENCE BY YOUNG ENTREPRENEURS IN THE REPUBLIC OF CROATIA Mladen Rajko* University of Zadar, Department of Economics Zadar, Croatia DOI: 10.7906/indecs.22.6.2 Regular article Received: 15 September 2024. Accepted: 21 November 2024. ABSTRACT This article examines the growing significance of artificial intelligence (AI) in the entrepreneurial ventures of young entrepreneurs in the Republic of Croatia. Through surveys and interviews with young entrepreneurs from various economic sectors, the study identifies the most frequently used AI tools and assesses their impact on business success. The findings indicate that while AI has the potential to revolutionize business processes, enhance decision-making, and improve efficiency, its adoption among young entrepreneurs is still inconsistent. Many entrepreneurs hesitate to fully integrate AI due to challenges such as high costs, lack of technical expertise, and ethical concerns. Despite these barriers, those who do use AI often apply it to tasks like content creation, social media management, and financial reporting, highlighting AI’s ability to streamline operations. However, the current level of AI adoption among young entrepreneurs remains insufficient to drive a major shift toward digital entrepreneurship. To fully unlock AI’s potential, the article suggests that targeted educational initiatives and resources tailored to young entrepreneurs are crucial. These efforts could bridge the knowledge gap and reduce perceived risks associated with AI. The article concludes by emphasizing that while AI offers significant opportunities for enhancing business capabilities, overcoming existing obstacles is essential. By addressing these challenges and fostering a supportive environment, there is substantial potential to drive innovation and success in the entrepreneurial sector. Future research should continue to explore AI adoption dynamics and broader implications, ensuring that young entrepreneurs are prepared to thrive in an increasingly digital world. KEY WORDS artificial Intelligence, AI, young entrepreneurs, AI tools, Croatia CLASSIFICATION JEL: L86, O31 *Corresponding author, : ; -; *University of Zadar, Department of Economics, Splitska 1, HR – 23 000 Zadar, Croatia The use of artificial intelligence by young entrepreneurs INTRODUCTION In today’s dynamic business environment, artificial intelligence (AI) is becoming an increasingly important tool for young entrepreneurs who want to improve their business processes, increase efficiency, and achieve a competitive advantage. This article explores using artificial intelligence tools among young entrepreneurs, focusing on their choices, experiences, and challenges. AI is expected to positively impact young entrepreneurs, improving opportunity recognition, decision-making, performance, education, and research while bringing challenges such as potentially damaging social and economic implications for traditional small businesses. AI is increasingly recognized as a transformative tool in entrepreneurship, especially for young entrepreneurs. Integrating AI into entrepreneurial activities will improve various aspects of the entrepreneurial process, from identifying opportunities to optimizing decision-making and business results. AI platforms enable young entrepreneurs to improve digital skills, organize finances, and recognize different types of intelligence, thus creating a stimulating digital environment. Also, it is expected that AI algorithms can offer new solutions to face challenges in entrepreneurial environments, improving creativity and judgment. Considering that research on the application of artificial intelligence among young entrepreneurs is a relatively new field, it is expected that further research will single out several vital works and authors that will contribute to the development of this field. The research was initiated due to the increasing use of AI in business, emphasizing young entrepreneurs in Croatia. While AI offers opportunities to improve efficiency and innovation, its adoption among young people is uneven due to high costs, lack of technical expertise, and ethical dilemmas. The innovativeness of the research lies in the specific focus on regional entrepreneurs and the tools most often used in their business processes, providing insight into opportunities and challenges in integrating AI. The research’s purpose is to analyze the use of AI among young entrepreneurs and determine how these tools contribute to business success. Objectives include identifying the most commonly used AI tools, analyzing barriers to their implementation, and proposing educational initiatives and policies. These are crucial for promoting the wider application of AI and are key outcomes of this research. This study significantly contributes to a better understanding of AI’s role in Croatia’s digital entrepreneurship development. The research included a survey and interviews with young entrepreneurs from various economic sectors in the Republic of Croatia to gain insight into which UI tools they use most often and how these tools contribute to their business success. The research results reveal trends in the application of artificial intelligence among young entrepreneurs, as well as specific tools that have proven to be the most useful in their business. In the continuation of the work, the most frequently used tools will be presented and analysed in detail. The goal of this article is to provide a deeper understanding of artificial intelligence’s role in young people’s entrepreneurial initiatives and to encourage the further application of these technologies to improve business results. It is assumed that AI algorithms can offer new solutions to solve challenges in the business environment, improving creativity and judgment. Research into the application of artificial intelligence among young entrepreneurs is a relatively new field, and it is necessary to highlight several of the most important papers and authors. Giuggioli and Pellegrini [1] claims in the research that artificial intelligence positively affects entrepreneurs through opportunities, decision-making, and the effect of education and research. Adnan [2] argue that an AI-powered online platform helps future digital entrepreneurs improve their digital skills, streamline their finances, and recognize multiple intelligences. After conducting research, Chalmers, MacKenzie and Carter [3] stated that AI can improve entrepreneurial activities. However, it can also have negative social and economic implications, especially for traditional small companies threatened by disintermediation. Obschonka and 657 M. Rajko Audretsch [4] prove that artificial intelligence and big data can contribute to the productive transformation of youth entrepreneurship research and real-world phenomena such as “smart entrepreneurship”. Tow (...truncated)