From human hands to machine minds: Financing AI-driven entrepreneurship in reward-based crowdfunding

This study examines the effect of artificial intelligence (AI) adoption on financing performance in reward-based crowdfunding. Using data from Kickstarter projects in the United States, I find that AI projects perform worse in fundraising compared to non-AI counterparts. This result remains robust after addressing potential endogeneity concerns. Abnormal tone in project narratives is one potential channel. Meanwhile, Information readability, geography, and backer feedback moderates the effect. Finally, this effect is stronger for projects with AI tech, less human input, or lower funding. This study contributes to the growing literature on AI in entrepreneurial finance.