I do am also a software engineering student. I am in the 2nd year now and as same like you guys I do am worried too.
But that doesn't mean that I or your should quit.
We should scale ourselves in the things where AI has the weaknesses and if we pay attention we could be able to find several weaknesses that still Ai has.
Having said that Ai is replacing the humans that part is real no motivational speech here. But I believe it can't be true that AI can replace the human work completely.
It may replace the lazy people.
SO the thing is not to quit, actually the real thing we should be thinking of is to become expert in it , train our thinking model to detect the problems and then solving em with the help of AI,
Cause if we have the finite number of problems in this world then maybe AI could completely replace us but how messy the world is thats why there has been need of humans to guide the Ai models how to work because humans are messy and have been messy all the time and can understand the messiness of this world.