<![CDATA[The rapid development of generative Artificial Intelligence (AI) technology offers significant efficiency opportunities across various sectors; however, empirical research within the local Indonesian context, particularly in Batam City, remains scarce. This exploratory study aims to analyze the influence of positive perception, negative perception, and AI regulation understanding on technology adoption trends, as well as productivity and product innovation opportunities among creative industry players. The creative industry is a focal point due to the inherent tension between technological efficiency and the preservation of human originality in the creative process. This research employs a quantitative causal approach, utilizing a sample of 30 respondents reached through snowball sampling techniques. Data analysis was performed using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS software. The findings reveal that only positive perception has a significant direct impact on product innovation (p=0.004), while AI regulation and technical adoption do not show significant effects. This suggests that a positive technology mindset is a more decisive factor for innovation than technical mastery or current regulatory compliance. These results underscore the urgent need for local government socialization of AI policies and enhanced digital literacy for Batam's creative practitioners to transform them from mere users into strategic AI-driven innovators.]]>
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