Grounded in regulatory focus theory, this study investigates the double-edged sword effect of generative AI adoption on sustainable entrepreneurial intentions and its underlying mechanisms. A questionnaire-based survey was conducted among 357 business students from public universities in China. The results reveal that generative AI adoption exerts a double-edged effect: it enhances sustainable entrepreneurial intentions by strengthening sustainable entrepreneurial self-efficacy through a promotion-focused pathway, while simultaneously undermining such intentions by heightening sustainable entrepreneurial fear of failure via a prevention-focused pathway. Moreover, artificial intelligence literacy moderates these relationships, amplifying the positive influence of generative AI adoption on entrepreneurial self-efficacy and attenuating its negative effect on fear of failure. This study enhances understanding of sustainable entrepreneurship amid the rise in generative AI, extends regulatory focus theory, and informs the development of AI-integrated sustainability education in academic institutions.
Kong et al. (2025) studied this question.