From Digital Literacy to Responsible AI-Driven Entrepreneurship: Institutional Readiness and Policy Implications for Higher Education

Abstract

Purpose: This paper develops a theory-informed conceptual framework for responsible AI entrepreneurship ecosystems in higher education. It addresses the limited integration of AI capabilities, entrepreneurship, institutional readiness, and governance in existing scholarship, particularly amid increasing AI adoption by higher education institutions (HEIs). Methodology: The study adopts a conceptual research approach grounded in institutional, human capital, and entrepreneurial ecosystem theories. Relevant literature on AI, entrepreneurship, higher education, governance, and innovation ecosystems is synthesised to construct an integrated conceptual framework. Results: The framework conceptualises responsible AI entrepreneurship as the intersection of AI capability, entrepreneurial innovation, ethical responsibility, and institutional governance. It identifies four interrelated dimensions: AI capability, entrepreneurial innovation, ethical and governance capability, and institutional readiness, and explains how leadership, pedagogy, technological infrastructure, governance systems, and ecosystem collaboration shape universities’ capacity to foster sustainable AI-driven innovation. Particular attention is given to challenges facing developing economies. Novelty and Contribution: The study advances higher education scholarship by integrating AI capability development, institutional readiness, entrepreneurship, and ecosystem thinking into a unified conceptual model, providing a foundation for future empirical research on responsible AI entrepreneurship ecosystems. Practical and Social Implications: The framework offers guidance for policymakers and university leaders seeking to strengthen AI governance, institutional readiness, and ecosystem collaboration. It supports the development of ethical, inclusive, and innovation-oriented higher education systems capable of preparing graduates and entrepreneurs for AI-driven economies.