International Journal of
Information and Education Technology

Abstract

Artificial Intelligence (AI) literacy has become a critical competency in digital-era entrepreneurship; however, its role in shaping entrepreneurial intention remains underexplored, particularly within vocational education systems in emerging economies. This study investigates the influence of AI Literacy on Entrepreneurial Intention among Indonesian vocational students by examining the mediating effects of Technology Self-Efficacy and Digital Competencies. Using a quantitative, cross-sectional design, data were collected from 348 vocational students selected through purposive sampling aligned with their exposure to AI-related and entrepreneurial courses. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 4.0. The results show that AI Literacy significantly enhances both Technology Self-Efficacy and Digital Competencies. However, Technology Self-Efficacy does not directly influence Entrepreneurial Intention, though it significantly predicts Entrepreneurial Mindset and Attitude. Digital Competencies, in contrast, emerge as a consistent and significant predictor of Entrepreneurial Mindset, Attitude, and Intention. Mediation analysis confirms that AI Literacy indirectly affects Entrepreneurial Intention through both Technology Self-Efficacy and Digital Competencies, with the latter exerting a stronger mediating effect. These findings position AI Literacy as a novel cognitive antecedent within entrepreneurial intention models and highlight the central role of actionable digital skills in enabling entrepreneurial behavior. Practically, the study underscores the need for AI-integrated digital entrepreneurship curricula and enhanced institutional support to strengthen students’ readiness for Indonesia’s expanding digital economy. The findings offer a distinctive emerging-economy perspective, broadening global scholarship on the intersection of AI literacy and entrepreneurship education and providing actionable insights for curriculum designers and education policymakers across comparable developing economies.