I have a rough idea of what I want to achieve and some steps on the way there, but don’t know how to actually implement it.
That is literally what the job is. If you can't do that then you aren't an engineer.
I’m concerned that there are skills I am missing out on developing, but at the same time if AI is being pushed so heavily is it not something I should lean into to be better equipped in working with it?
I'll tell you what I told my nephew: Yes, everyone is going to use AI to one degree or another. So why would I hire you over anyone else? Or, more pointedly, why would I hire someone at all?
Getting to that interview gets harder and harder every year (every month, really). But engineers (and even many managers) can immediately tell someone who knows their shit versus someone who "vibe codes" all the "hard parts".