The rapid adoption of Artificial Intelligence (AI) in the workplace has created substantial opportunities for productivity improvement while raising concerns about potential cognitive consequences. This study examines the parallel associations of AI usage with work productivity and digital amnesia among Generation Y and Z employees in Jakarta. Using a quantitative cross-sectional survey, data were collected from 96 formal and informal workers who had used AI-based technologies in their daily work for at least three months. The study draws on the Technology Acceptance Model (TAM) as a conceptual foundation for operationalising AI-related technology usage, while cognitive offloading provides the theoretical rationale for digital amnesia. Simple linear regression indicates that AI usage is positively and significantly associated with work productivity (β = 0.713, p < 0.01; R² = 0.509) and with digital amnesia (β = 0.389, p < 0.01; R² = 0.151). The stronger statistical association with productivity suggests that AI is closely related to improvements in work efficiency and output, whereas the smaller explanatory power for digital amnesia indicates that cognitive consequences are likely shaped by additional behavioural and contextual factors. The findings highlight the need for organisations to balance AI-enabled productivity with digital literacy, critical thinking, and independent problem-solving practices. Keywords: Artificial Intelligence; Work Productivity; Digital Amnesia; Generation Y; Generation Z
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