Purpose Drawing on the integrated model of resource-based view and the diffusion of innovation theories, this study aims to investigate how artificial intelligence use influences business model innovation and entrepreneurial resilience in entrepreneurial ventures. It further examines the mediating role of business model innovation and the moderating effect of environmental hostility on these relationships. Design/methodology/approach Data were collected from a survey of 329 founders of entrepreneurial ventures. This study used Hayes’ PROCESS macro with bootstrapping techniques to test the hypothesized relationships and explore conditional indirect effects. Findings The results show that artificial intelligence use significantly enhances both business model innovation and entrepreneurial resilience. Business model innovation partially mediates the relationship between artificial intelligence use and entrepreneurial resilience. In addition, environmental hostility weakens the positive effect of artificial intelligence use on business model innovation and moderates the indirect pathway between artificial intelligence use and entrepreneurial resilience through business model innovation. Research limitations/implications This study offers actionable insights for entrepreneurs and policymakers by highlighting how artificial intelligence can be leveraged to strengthen innovation and resilience, especially in uncertain environments. Originality/value This study contributes to the literature by unpacking the mechanisms through which artificial intelligence impacts venture performance and identifying business model innovation and environmental hostility as critical boundary conditions in this process.