The application of Artificial Intelligence (AI) tools in multimedia editing has revolutionized the creative process, and students can now finalize their work with more effectiveness and precision. In this research, the application and impact of AI-based multimedia editing tools among students are quantified based on their experience, issues, and perceived effect. The participants of this research are Diploma in Information Technology first-year students who take the Introduction to Multimedia course Year 1, Semester 2 which consist of batch IT23C and IT24A. The course exposes students to multimedia features and makes them exhibit methods of planning and executing multimedia projects. Throughout the course, students were exposed to AI-powered multimedia editing software like Renderforest, Canva AI, and Fotor AI that help automate design tasks, create new content, and optimize media files. This study adapts the Technology Acceptance Model (TAM) to measure students’ usage, usefulness of AI tools, ethical concerns and behavioural intentions. Results show that although AI tools greatly enhance editing speed and creativity, students feel they rely on automation, are ethically concerned, and experience a sharp learning curve for advanced features. This paper also examines students' attitudes towards the role of AI in skill acquisition and its potential contribution to the creative sector in the future. The research contributes to the emerging debate on AI in education, offering implications for educators, developers, and policymakers on how best to leverage AI-facilitated learning environments.