The rapid adoption of artificial intelligence (AI) is leading to job losses and changing employment patterns across sectors, with major impacts on software engineering and creative industries. Technology companies such as Salesforce, Microsoft, Google, and Meta are increasingly using AI to automate coding and related tasks, resulting in reduced hiring, especially for entry-level roles. Microsoft reports that AI now writes 20% to 30% of its code, Google uses AI for over 30% of new code, and Meta aims for AI to write half of its software development within the next year. Industry predictions suggest AI could soon write up to 90% of all new code. In 2025 alone, more than 62,114 tech workers have been laid off globally. In India, which has 5.8 million software professionals and produces around 1.5 million engineering graduates annually, the impact is particularly acute. Only 10% of these graduates are considered job-ready for the current market. Companies are decoupling revenue growth from headcount, seeking to deliver more with fewer employees. Many young engineers face layoffs and changing job requirements, with a growing emphasis on upskilling in AI and related fields. Despite these challenges, India's demand for AI-skilled professionals is projected to exceed 1 million by 2026. The government is expanding AI education through initiatives under NEP 2020, increasing BTech seats, and supporting programs such as free online AI courses from IIT Madras. The effects of AI-driven automation extend to creative fields, where illustrators, copywriters, and voice actors report job losses and wage reductions as companies adopt AI-generated content. Firms like Duolingo are replacing contract workers with AI. Startups have also reduced new graduate hiring, with rates dropping to 6% in 2024. A recent International Labour Organization (ILO) study finds that women are three times more likely than men to lose jobs to AI, particularly in clerical and administrative roles. This gender gap is especially pronounced in high-income countries. The ILO urges policymakers to adopt inclusive strategies to prevent automation from worsening existing workforce inequalities. While automation is creating new roles such as AI prompt engineers, many educational institutions are not fully equipped to prepare students for an AI-driven job market. Continuous learning, hands-on experience, and outcome-focused skilling programs are increasingly necessary for job security.