Detecting and Mitigating Entrepreneurial Cognitive Biases Through AI

Sachdeva, Leena ORCID: https://orcid.org/0000-0002-8574-9568, Rathnasiri, Mananage Shanika Hansini and Mai, Huyen Thanh (2026) Detecting and Mitigating Entrepreneurial Cognitive Biases Through AI. In: Exploring Entrepreneurial Psychology Through AI. IGI Global Scientific Publishing, Hershey. pp. 251-266. ISBN 9798337372990 Available at: https://doi.org/10.4018/979-8-3373-7297-6.ch013

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Abstract

Entrepreneurial decision-making is often shaped by cognitive biases that distort judgment under conditions of uncertainty. While heuristics enable quick action, biases such as overconfidence, optimism, and confirmation bias can compromise opportunity recognition, financing, innovation, and scaling decisions. This chapter examines how artificial intelligence (AI) can serve as both a diagnostic and corrective tool in entrepreneurial practice. Drawing on current applications, it highlights how AI detects biased decision patterns through behavioural analytics, sentiment analysis, and predictive modelling, and mitigates biases via decision-support systems, financial forecasting, and explainable algorithms. Practical case studies demonstrate the potential of AI in venture capital, market research, and resource allocation. However, challenges related to algorithmic bias, data privacy, and ethical accountability remain. The chapter concludes by exploring future directions for AI-human collaboration in fostering more balanced, resilient, and inclusive entrepreneurship.

Item Type: Book Section
Uncontrolled Keywords: Cognitive bias | Condition | Confirmation bias | Decisions makings | Financing innovation | On-currents | Opportunity recognition | Optimism bias | Scalings | Uncertainty
Subjects: Social Sciences and humanities > Decision Sciences > General Decision Sciences
Social Sciences and humanities > Decision Sciences > Information Systems and Management
Depositing User: Mr. Syed Anas Ali
Date Deposited: 10 Aug 2026 11:16
Last Modified: 10 Aug 2026 11:16
Official URL: https://doi.org/10.4018/979-8-3373-7297-6.ch013
URI: https://pure.jgu.edu.in/id/eprint/12166

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