Artificial Intelligence (AI) has transitioned from a disruptive novelty to a strategic "copilot" in entrepreneurial ecosystems. This systematic review synthesizes 68 peer-reviewed studies (2018–2024) and 12 startup case studies to evaluate AI’s dual role in enhancing productivity and driving innovation. Methodologically grounded in Resource-Based View (RBV) and Dynamic Capabilities frameworks, our analysis reveals that AI copilots automate 30– 75% of operational workflows (e.g., customer service, data processing), liberating founders for high-value innovation. Startups leveraging AI-driven analytics report 40% faster market entry and 2.3× higher patent output. However, adoption barriers persist: 74% face talent shortages, while algorithmic bias affects 31% of HR applications. We introduce the Human-AI Synergy Model to balance efficiency with ethical governance. The study concludes that AI’s greatest value lies in augmenting—not replacing—human creativity, urging policymakers to support AI literacy initiatives. Future research must address sector-specific scalability and Global South accessibility gaps.