How do green start-ups use generative AI?
How do founders of green start-ups use generative AI, and what opportunities and risks does this create for their dual mission of economic viability and environmental impact? A new journal article by Jeanine Kirchner-Krath, Eva Alexandra Jakob, Thomas Neumann, Mario Schaarschmidt, and Benedikt Morschheuser addresses this question.
For mission-driven start-ups, generative AI should not be treated as a shortcut to growth. Its value depends on whether it strengthens the venture’s impact logic rather than simply accelerating processes and adding new risks. — Dr. Thomas Neumann, Borderstep Institut
Five roles of generative AI in environmentally oriented business models
Based on a qualitative survey of 128 green start-ups in Germany, the study identifies five distinct roles of generative AI in environmentally oriented business models:
- seldom-used tool
- marketing content producer
- core green activity booster
- assistive sparring partner
- growth accelerator
The findings show that generative AI is already being used in many different ways by green start-ups. However, the intensity and strategic relevance of its use vary considerably. In some cases, generative AI is used only occasionally, for example to support marketing or content creation. In others, it is already becoming part of core business activities, customer communication, product development or strategic decision-making.
What challenges do green start-ups face when using generative AI?
At the same time, the study reveals several tensions that green start-ups are confronted with when using generative AI:
- technical immaturity and unclear benefits
- regulatory uncertainty
- data security and ethical risks
- high resource and energy consumption of AI systems
- limited specialization of generative AI for dual mission business models
The study therefore highlights the ambivalent role of generative AI in environmental entrepreneurship. On the one hand, it can support innovation, efficiency and scaling in green start-ups. On the other hand, it creates new challenges for ventures that aim to combine business success with meaningful environmental impact.
The full article by Kirchner-Krath, J., Jakob, E. A., Neumann, T., Schaarschmidt, M., & Morschheuser, B. (2026). Generative artificial intelligence in environmental entrepreneurship: Emerging roles and challenges to achieve a dual mission. Journal of Small Business Management, 1–51. https://doi.org/10.1080/00472778.2026.2656790 is available open access here.
Green Economy