Determinants of Artificial Intelligence Adoption Among Generation Z Entrepreneurs in Indonesia

Abstract

The rapid diffusion of artificial intelligence (AI) has created new opportunities for entrepreneurs, particularly among Generation Z, who are widely recognized as digitally proficient and innovation-oriented. However, empirical evidence on the determinants of AI adoption among Generation Z entrepreneurs remains limited, especially in emerging economies. This study aims to examine the direct effects of perceived usefulness, perceived ease of use, trust in artificial intelligence, and perceived risk on artificial intelligence adoption among Generation Z entrepreneurs in Indonesia. Using a quantitative approach, data were collected through a survey of 150 Generation Z entrepreneurs across major regions in Indonesia and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The results indicate that perceived usefulness, perceived ease of use, and trust in artificial intelligence positively influence AI adoption, while perceived risk has a negative effect. The structural model demonstrates moderate to substantial explanatory power, highlighting the importance of perception-based factors in shaping AI adoption decisions. This study contributes to the technology adoption literature by extending established acceptance frameworks to the entrepreneurial and generational context. Practically, the findings suggest that efforts to promote AI adoption among young entrepreneurs should emphasize tangible business benefits, usability, trust-building mechanisms, and risk mitigation strategies to foster sustainable AI adoption.