doi.org/10.52340/eab.2026.18.01.07.

The paper explores the role of Artificial Intelligence (AI) as an innovative driver of entrepreneurship in the era of digital transformation. It emphasizes that modern companies are constantly seeking ways to gain a competitive edge. AI offers substantial support to startups and small- to medium-sized enterprises by enhancing competitiveness, reducing costs, and fostering innovation.
The study examines both the advantages and challenges of adopting AI in entrepreneurial activities.
In Georgia, the AI sector is developing rapidly, with clear signs of integration into business processes, growing consumer interest, and increasing startup activity. At present, AI is most actively applied in marketing, finance, e-commerce, and digital services—industries that already rely on data-driven workflows, possess strong digital infrastructure, and embrace technological innovation. Companies employ AI for advertising optimization, customer behavior analysis, financial risk assessment, and sales strategy planning.
Although Georgia’s AI market remains in its early stages, notable progress has been made in recent years. Businesses are increasingly recognizing AI’s potential and working to embed it into their operations.
For Georgian entrepreneurs, AI presents a unique opportunity to expand into international markets and meet the challenges of global competition. Most importantly, it enables effective collaboration with international clients. Through automated analytics and marketing tools, entrepreneurs can identify foreign customer needs, tailor products and services to diverse cultural and economic contexts, and streamline communication across global markets.
Moreover, AI enables the automatic translation of content. Websites, marketing materials, customer support messages, and product descriptions can be translated quickly and with relatively high accuracy into multiple languages. This reduces language barriers and enhances accessibility for international customers.
AI also contributes to improving service quality. Digital assistants, chatbots, and automated response systems ensure continuous customer communication, provide rapid responses to inquiries, and deliver personalized services. These capabilities increase customer satisfaction, strengthen brand reputation, and support the development of long-term relationships.
However, several challenges accompany this process:
1. Shortage of specialists – The number of highly qualified AI professionals in Georgia remains limited, hindering the implementation of innovative projects.
2. Language barrier – The unique characteristics of the Georgian language and the scarcity of resources complicate the development of Georgian-language AI models, which are essential for addressing local needs.
3. Financial constraints – AI projects often require substantial investment, posing a significant challenge for many Georgian companies.
4. Low awareness – Some organizations still lack a comprehensive understanding of AI’s potential benefits and applications.
5. Infrastructure limitations – In certain cases, the existing technical infrastructure is insufficient for the full-scale operation of AI systems.
Despite these challenges, Georgia’s technological ecosystem is gradually evolving, with innovative startups emerging to address local problems through AI.
The thoughtful development and regulation of AI technologies will be decisive for their successful integration into society. This includes implementing ethical principles, strengthening collaboration between academia and industry, increasing public engagement, and raising awareness about AI. Enhancing education will allow for the maximum utilization of AI’s potential while minimizing possible negative impacts.
The paper concludes that Artificial Intelligence will enable Georgian entrepreneurs not only to expand their market reach but also to deliver high-quality, efficient, and internationally compliant products and services—significantly boosting their competitiveness.

Keywords: Artificial intelligence, innovation, AI technologies, competitiveness of companies.
JEL Codes: O33, L26, M13, M15

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