The integration of generative artificial intelligence (GenAI) tools in higher education has been rapidly evolving. This study presents the planning, implementation, and evaluation of a digital transformation initiative within an undergraduate Innovation and Entrepreneurship course. To explore the potential of AI in fostering innovation and critical thinking, two exercises utilizing ChatGPT were introduced. One was incorporated into the summative assessment, directly influencing students’ individual assignments.

The first exercise was implemented in-class, where students initially completed a Pitch Canvas manually and subsequently refined their pitches using ChatGPT. This process allowed students to develop and test AI-generated prompts to enhance their work. The task was optional, and students could integrate the refined output into their final group reports if they found it beneficial.

The second exercise was a mandatory component of the individual assignment. Students were required to follow structured guidelines, engage in a reflective exercise, and subsequently use ChatGPT to generate new products or services for their business models. The assignment demanded students to include the prompt used, critically assess the quality of AI-generated ideas, reflect on the exercise’s challenges, and suggest improvements for future applications of GenAI in the course.

The integration of ChatGPT had a direct impact on student assessment and engagement. In total, 14 group reports incorporated AI-enhanced pitches, and 44 individual assignments were completed using ChatGPT. Students successfully applied AI to their tasks and provided valuable feedback on the process. Many appreciated the tool’s ability to refine their work, with some expressing surprise at its effectiveness. Several challenges emerged. The free version of ChatGPT, used by most students, imposed limitations on interaction volume, forcing them to complete the exercise in multiple stages, which disrupted their workflow. Additionally, when students used AI-generated images, the platform did not provide a direct prompt link, requiring them to submit screenshots instead. Some students also suggested the inclusion of alternative GenAI tools, such as Gemini or Copilot, to diversify the experience and explore different AI capabilities.

Observations and student feedback highlighted both the benefits and areas for improvement. The introduction of these exercises contributed to increasing the digital component of the course while maintaining its core learning objectives. The results demonstrated that generative AI can effectively support creativity, business model development, and pitch refinement. However, to enhance future implementations, access to a paid version of ChatGPT or similar tools should be ensured, enabling students to interact more fluidly with AI without technical constraints. Furthermore, allowing students to select from a variety of generative AI platforms could enrich their learning experience and provide a broader perspective on AI-driven innovation.

This study reinforces the relevance of AI integration in entrepreneurship education, and its potential to complement traditional teaching methods while fostering critical thinking, creativity, and digital literacy. The findings contribute to the ongoing discourse on the role of AI in higher education and provide insights into practical strategies for leveraging GenAI tools in business and innovation-oriented curricula.

Keywords: Generative AI, ChatGPT, Higher Education, Entrepreneurship Education, Innovation.