This paper investigates the role of local knowledge specializations from universities in the artificial intelligence (AI) startup creation process. The empirical analysis is grounded in the Knowledge Spillovers Theory of Entrepreneurship. It provides evidence of the interplay between the presence of university knowledge specializations and the creation of AI startups located in Italian NUTS3 regions. More precisely, we analyze the mix of different types of university knowledge specializations able to foster the creation of AI startups, demonstrating that competencies in technological domains, such as computer science, need to be complemented with domains of applications for the emergence of AI technology. The findings indicate that the creation of AI startups is closely tied to the local knowledge present in the region. The article also proposes an empirical approach to identify and classify innovative startups operating in AI domains. Our work offers important implications for regional innovation policies and the management of AI in entrepreneurship.