It didn't take the job in the sense that the OP is still employed. It changed the job into something that barely resembles what the OP was hired to do. It's not quite constructive dismissal, but many people choose fields for reasons of maximizing income. It's hard to stay motivated doing something you hate, especially when a week ago your job had you doing something you love. And that says nothing about the OP's ethical quandry about IP laundering.
I might be too cynical, but given the reported productivity gains, it's quite possible the company decides they can do with a single artist. Or if less skilled artists can generate similar results with suitable AI prompts, it'll probably drive wages down, making the OP expendable. I'd imagine at the very least it sets a ceiling on advancement.