This study investigates the effects of perceived usefulness of generative artificial intelligence (AI) tools and AI literacy on entrepreneurial intention in fashion, focusing on the mediating and moderating roles of entrepreneurial self-efficacy and perceived entrepreneurial risk, respectively. Survey data were collected from 200 local aspiring youth entrepreneurs and analyzed using partial least squares structural equation modeling (PLS-SEM) with SmartPLS 4.0. The results reveal that AI literacy has a significant positive effect on entrepreneurial self-efficacy, whereas perceived usefulness of generative AI tools does not have a significant influence. Entrepreneurial self-efficacy, in turn, positively affects entrepreneurial intention and mediates the relationship between AI literacy and entrepreneurial intention. However, no mediating effect is found for perceived usefulness of generative AI tools. In addition, perceived entrepreneurial risk negatively moderates the relationship between entrepreneurial self-efficacy and entrepreneurial intention, indicating that higher levels of perceived risk weaken the positive effect of self-efficacy on entrepreneurial intention. These findings suggest that AI literacy plays a more decisive role than perceived technological usefulness in shaping entrepreneurial intention by enhancing entrepreneurial self-efficacy. However, when perceived entrepreneurial risk is high, the positive effect of self-efficacy on entrepreneurial intention diminishes. This underscores the importance of combining AI competency development with risk management in entrepreneurship education and policy support.
Jung et al. (2026) studied this question.