The accelerating development of artificial intelligence (AI) is transforming the knowledge, competencies, and capabilities required to engage in digital entrepreneurship. Yet, the possession of AI-related competencies does not necessarily translate into entrepreneurial intention, particularly among vocational students who experience extensive exposure to digital technologies but remain comparatively less engaged in entrepreneurial activities. Addressing this issue, this study explores how artificial intelligence literacy shapes digital entrepreneurial intention and investigates the mediating role of attitude toward digital entrepreneurship in this relationship. Drawing on a quantitative cross-sectional design, data were collected from 300 vocational students in South Sulawesi, Indonesia. Data were analyzed using Partial Least Squares Structural Equation Modeling. The findings demonstrated that artificial intelligence literacy positively influences students’ attitudes toward digital entrepreneurship, while such attitudes substantially enhance their intention to pursue digital entrepreneurial activities. However, artificial intelligence literacy does not exert a significant direct influence on digital entrepreneurial intention. Instead, its influence emerges indirectly through attitude toward digital entrepreneurship, highlighting the importance of an attitudinal mechanism in translating technological competence into entrepreneurial intention. These findings advance the emerging literature on AI and digital entrepreneurship by challenging the assumption that technological literacy alone is sufficient to foster entrepreneurial intention. The study further underscores the importance of cultivating favorable entrepreneurial attitudes alongside AI competencies within vocational education, particularly in emerging-economy contexts where digital transformation is reshaping pathways to entrepreneurship.