The AI industry is poised to grow in the next decade, and AI startups now serve broad segments of customers. Existing scholarships have pondered how AI can enhance the ability of organizations to develop and apply new knowledge in an uncertain environment. On the positive side, AI has the potential to identify disruptive changes in the external environment, forecast disruptions, and adapt. However, AI presents novel challenges, such as the black box of AI decision-making, which may induce a lack of trust, making it impossible to implement AI's recommendations. While entrepreneurs expect AI-recommended decision-making to be “explainable”, we lack clarity implications of AI on an entrepreneur's ability to learn and adapt. We lack an understanding of how entrepreneurs interact with AI technologies and implement novel solutions. The findings revealed that transparency and explainability of AI can potentially enhance data privacy and security, thereby enhancing trust. As AI systems are increasingly integrated with daily routines, ensuring transparency of AI's recommendations is crucial.