In the age of digital transformation, the potential for collaboration is significantly enhanced by technologies that optimize decision-making processes, especially with the deployment of Artificial Intelligence (AI) technologies. This implies the value of constructing an AI-based innovation ecosystem. Thus, this study aims to explore how AI-based digital platforms and technologies are shaping innovation ecosystems, with a particular focus on startups. Employing a systematic literature review methodology, the study examines 244 relevant publications collected from the Scopus database. The findings of the study are synthesized into three main clusters: “Digital Technologies in the Innovation Ecosystem for generating Digital Entrepreneurship”, “Digital Technologies in Innovation Ecosystems for addressing Circular Economy and Sustainability”, and “Digital Tech and AI for Innovation Ecosystems: Implications for Business Models”. Findings suggest that startups at the forefront of adopting AI, IoT, and blockchain are not just transforming their business models but are also leading the way in promoting a sustainable and interconnected digital future. The paper concludes with managerial implications, suggesting that a profound understanding and strategic implementation of digital platforms and advanced technologies within innovation ecosystems are crucial for optimizing decision-making processes in startups. It highlights the promise of these technologies in empowering startups to navigate complex ecosystems and create value that goes beyond economic gains, aligning with societal benefits and environmental sustainability.