Abstract
As generative artificial intelligence (AI) rapidly transforms educational landscapes, understanding its impact on students' core competencies has become increasingly critical for educators and policymakers. Despite growing integration of AI technologies in classrooms, there remains a significant knowledge gap regarding how these tools influence the development of essential 21st-century skills in secondary education contexts. This study addresses this gap by investigating the relationships between generative AI applications and two critical student outcomes: innovation capability and digital literacy. Through structural equation modeling analysis of data collected from 500 students across grades 7-12, the research reveals three key findings: Firstly, generative AI applications demonstrate a substantial positive effect on students' innovation capability (β = 0.862, p < .001), enhancing critical thinking, creative problem-solving, and adaptive learning processes. Secondly, AI integration significantly improves digital literacy (β = 0.835, p < .001) by facilitating sophisticated information processing and active technological engagement. Thirdly, a strong bidirectional relationship exists between innovation capability and digital literacy (β = 0.791, p < .001), suggesting these competencies mutually reinforce each other in AI-enhanced learning environments. The model demonstrates robust explanatory power with excellent fit indices. By integrating the Technology Acceptance Model with Diffusion of Innovations theory, this study advances theoretical understanding of AI's educational impact while providing practical guidelines for educators. The findings underscore the importance of strategic AI integration in educational curricula and suggest specific pathways for developing critical student competencies in the digital age.