This reads too much like it was LLM generated. I can't say for sure if it was but I have an allergic reaction to the short snappy know-it-all LLM writing style.
The company could lay you off tomorrow. At which point all that thought and care that you put into your work instantly becomes meaningless not only to you but also to your potential new employers.
You will be lucky if any of the skills in your day-to-day job are actually tested in an interview. If you get a chance to speak about your work, it'll only be at a high level.
While you're training to perform as a code-monkey for interviews, back at the company, your carefully thought out designs are benefitting not only the cogs that replaced you but also the people who made the decision to drop you.
The better the system runs without you, the more easily they will be able to justify not needing you.
I'm not saying you should actively try to make a system harder to maintain just don't worry so much if it becomes that way due to "leadership". Remember that they get paid multiples of your salary to make these type of decisions.
> what I'm seeing is that all of the skills that my training and years of experience have helped me hone are now implemented by these tools to the level that I know most businesses would be satisfied by.
So when things break or they have to make changes, and the AI gets lost down a rabbit hole, who is held accountable?
You NEED to be getting at least 1 interview (with a human, never do one sided AI interviews) per month.
Interviewing is a skill and unfortunately the best way to practice that skill is real interviews.
If a month goes by without a single interview, that is all the feedback you need that you need to try something different.
It's good that you have made it a routine to apply, I would just try to fine tune your application towards specific roles.
Also consider how AI is changing what employer's are looking for. The job posting you're seeing likely exists because underneath is something that AI can't do. i.e Perhaps that simply means knowing how best to leverage AI or there's some communication / ownership element to the role that they want a human to be in charge of, etc.
If you look at things in this way you'll apply for fewer jobs. Some days you may not apply to any because none meet your criteria.
So the TLDR here is to remember it's more about focused quality instead of playing the numbers and aiming for quantity.
The most ironic part is that AI skills won't really help you with job security.
You touched on some of the reasons; it doesn't take much skill to call an API, the technology is in a period of rapid evolution, etc.
And now with almost every company trying to adopt "AI" there is no shortage of people who can put AI experience on their resume and make a genuine case for it.
Any overlap between interview skills and job performance is a coincidence.
You have to accept this on a visceral level.
Alternatively, remember that the reason the company is making you jump through these hoops is that there are many other candidates who are equally qualified.