Design Thinking-Drive Business Modelling and AI Utilization: A Study on University Students’ Entrepreneurial Competencies

University-based entrepreneurship education is widely recognized as a critical component in fostering adaptability and enhancing startup competencies among youth.However, the proportion of new entrepreneurs remains relatively low in comparison to the national economic demands.This study investigates the extent to which the application of design thinking, supported by artificial intelligence (AI) tools, can enhance students' startup competencies.A quantitative research design was employed, utilizing structural equation modeling (SEM) for data analysis.The respondents were selected through judgmental sampling, comprising 179 students who had completed an entrepreneurship course.Data were collected via questionnaires and analyzed using SmartPLS 4 software.The findings indicate that design thinking has a significant positive impact on students' startup competencies.Furthermore, design thinking was found to significantly influence AI adoption; students engaged in design-thinking-based instruction were more inclined to utilize AI tools in developing their business models.However, the adoption of AI did not exhibit a significant direct effect on startup competency.As a result, the mediating role of AI adoption in the relationship between design thinking and startup competency was also found to be nonsignificant.These findings suggest the need for further investigation into how design thinking can be more effectively integrated with AI tools to optimize learning outcomes.