Bridging the digital divide: a systematic review of AI-driven youth entrepreneurship in informal urban ecosystems

Abstract

This study examines how Artificial Intelligence (AI) is shaping youth entrepreneurship in Africa’s informal urban economies. Understanding this relationship is important because young entrepreneurs increasingly rely on digital technologies to overcome structural barriers such as limited infrastructure, restricted market access, and socio-economic exclusion. The study employs a systematic literature review of 146 peer reviewed articles published between 2020 and 2025. Bibliometric and thematic analysis were used to identify key research patterns, emerging themes, and knowledge gaps related to AI adoption among youth entrepreneurs in informal urban settings. The findings show that AI adoption is primarily mediated through mobile platforms and social media tools that support automation, market access, and digital visibility. However, adoption remains constrained by persistent digital divides, limited digital literacy, and uneven ecosystem support. The review further reveals that informal learning, peer networks, and digital improvization play a central role in how young entrepreneurs acquire and apply AI technologies in resource constrained environments. The study proposes a contextualized framework that emphasizes digital access, learning pathways, and ecosystem integration, and highlights the need for inclusive and locally grounded digital innovation strategies in African cities.