Enhancing student academic success and career readiness is important in the rapidly evolving educational field. This study investigates the influence of ChatGPT, an AI tool, on these outcomes using the Stimulus-Organism-Response (SOR) theory and constructs from the Technology Acceptance Model (TAM). The aim is to explore how ChatGPT impacts cognitive skill development, career-relevant knowledge and skills, academic success, and career readiness. Employing a quantitative research approach, survey data from 290 students at University Teknologi Malaysia were analyzed using Structural Equation Modeling (SEM). Findings indicate that frequent ChatGPT usage positively affects cognitive skills and career-relevant knowledge. Specifically, high-quality ChatGPT outputs significantly enhance cognitive skills ([beta] = 0.40, p < 0.001) and career-relevant knowledge ([beta] = 0.36, p < 0.001). Personalized learning experiences through ChatGPT further support cognitive development ([beta] = 0.23, p < 0.001) and career-relevant knowledge acquisition ([beta] = 0.17, p < 0.001). The study also demonstrates that improved cognitive skills contribute to higher academic success ([beta] = 0.35, p < 0.001) and greater career readiness ([beta] = 0.28, p < 0.001). However, trust in ChatGPT and access to information alone did not significantly impact cognitive skills or career-relevant knowledge. Additionally, career-relevant knowledge alone did not predict substantially career readiness, highlighting the importance of practical experience and soft skills. While ChatGPT enhances academic performance and career preparation, potential challenges include over-reliance on AI and misinformation risks. The findings highlighted the need for balanced AI integration in education, complementing traditional methods with critical evaluation skills. Future research should examine how ChatGPT can be combined with other educational strategies to improve career readiness further and address AI's limitations in educational settings.