<![CDATA[This article aims to analyze the challenges faced by Generation Z in developing culture-based entrepreneurship and identify strategies for utilizing Artificial Intelligence (AI) and digitalization to support business sustainability. The article uses a qualitative descriptive method with a library research approach. Data were obtained from various scientific sources, such as journals, books, academic articles, and documents relevant to the themes of entrepreneurship, Generation Z, digitalization, artificial intelligence, and cultural preservation. Data analysis was conducted using content analysis with stages of data reduction, data presentation, and drawing conclusions. The results show that Generation Z has a high adaptability to the development of digital technology, enabling them to use social media, marketplaces, and AI-based technologies to support entrepreneurial activities. The use of these technologies contributes to expanding market reach, increasing promotion effectiveness, assisting in consumer trend analysis, and driving culture-based product innovation. However, Generation Z also faces challenges, including limited managerial experience, limited access to capital, increasingly competitive markets, and the risk of reduced authentic cultural values due to excessive modernization. Therefore, there is a need for strategies that integrate technological innovation with principles of cultural preservation. This article offers a novelty in the form of a hybrid business model concept that combines AI utilization and digitalization with efforts to preserve local cultural values. The model enables the creation of entrepreneurship that is not only competitive and innovative but also contributes to the sustainable preservation of cultural heritage. The research findings are expected to serve as references for young business actors, academics, and policymakers in developing a culture-based creative economy ecosystem in the digital era.]]>
