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ABSTRACT This paper presents findings from a qualitative study that explored the factors affecting start‐up employees' adoption of AI technology for innovation ecosystems. Using thematic analysis based on interviews with 35 employees from start‐ups, we employed a grounded theory approach due to the newness of the context and the limited prior research. Our analysis identified several key themes, including perceived benefits of AI, technical considerations, organizational culture and values, employee attitudes and beliefs, access to resources, legal and ethical considerations, and industry‐specific factors. We found that technical considerations, such as data quality and technical infrastructure, played a significant role in determining AI adoption. Additionally, organizational culture and values were important in shaping employees' attitudes towards AI. Our study highlights the importance of addressing both technical and cultural factors when promoting the adoption of AI technology for innovation ecosystems in start‐ups. Our findings provide valuable insights for start‐up managers, policy makers, and researchers seeking to better understand the factors influencing AI adoption in this context.
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