Generating video is a heavy operation, but there's Genie 3, a Minecraft demo, and others that try to make an on-the-fly AI generated world. There's always many "what ifs" but it's not good enough yet. Even if it were, hand crafted content likely has more appeal than whatever random junk AI comes up with. Also 2D games are very different from 3D, AI generated or not, and have their own place. Nearly all the top mobile games are 2D.
Don't forget that games are mainly about the gameplay, which we then try to make look cool. Cool looking generated stuff doesn't mean the gameplay is interesting or fun. It also doesn't fit with many types of games, especially 2D. If you're building slots, Chess, Mahjong, or similar game, AI that can generate 3D worlds doesn't help you very much. It can help with art, with varying results and often a lack of consistency. It can't yet help much with 2D animations, as there is much less focus on AI for 2D. It can help with coding and the gameplay part, sort of, but using it for the core of your app is not a good idea. You need control over the details to make it good. Begging AI to get the details right rarely has a good outcome.
Generally AI makes easy or tedious things easier. It can do more sometimes, but often ends up wasting more time than it would have taken to do it manually. It is an absolutely amazing tool for learning and that I think that is its best use. Don't misuse it to avoid learning! That leads to making a big, unusable mess. If you are using it for something you don't understand in the end, you're doing it wrong. You need to be able to guide it when it goes off the rails. If you don't understand, you won't even know that you're waaay off in the weeds.
Using it to cut corners to produce poor quality in a short amount of time may be OK for the right situation, but that isn't generally very compelling.
As for how to cope with the future, learn to use AI to improve yourself by learning new things. Don't use it to do things you don't understand, use it to learn instead. Use it where it makes sense to make your time more efficient and to improve the quality of your output. Don't try to force it where it doesn't make sense. If you find yourself relying on it for everything, you're forcing it. If you are making good use of it and staying on top of new AI capabilities, your usage will evolve as it does. If it ever gets to the point where you are obsolete, nothing you can do could prevent that anyway.