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Entrepreneurship risks in the context of digital transformation and artificial intelligence

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The subject of this study is entrepreneurial risks in the context of the development of digitalization and artificial intelligence (AI). The authors have identified two groups of risks: risks associated with the uncertainty of the external environment and risks of fraudulent practices by entrepreneurs themselves within the framework of business processes. These groups of risks are usually considered independently of each other, but this study compares the impact of digitalization and artificial intelligence on both groups of risks. The purpose of the study is to summarize the results of observations related to the two groups of entrepreneurial risks in the context of digitalization and AI. The study was based on the opinions of COSO experts and data from monitoring the external environment of business activities by experts from China, which is one of the most advanced countries in the development of digitalization and AI. A comparison of the effects of these risk groups showed that the effects are identical and amount to the emergence of new risks associated with the use of AI. Another conclusion is that there is a need to revise the theoretical concepts of production factors, which includes digitalization and AI along with labor, land, capital, and technology. The final conclusion relates to the issue of the validity and relevance of entrepreneurial decisions made with the risks associated with AI-generated decisions.

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