Artificial Intelligence (AI) is transforming the landscape of Intellectual Property Rights (IPR), raising fundamental questions regarding ownership, inventorship, and the adequacy of existing legal frameworks. Intellectual property rights have traditionally been designed to protect human creativity and innovation, ensuring economic benefits and incentivizing further research and development. However, the increasing autonomy of AI systems in generating inventions, artistic works, trademarks, and trade secrets challenges this human-centric structure. The study traces the evolution of IPR from early copyright and patent laws to international treaties and modern digital protection, demonstrating that legal systems have historically adapted to technological change. Yet AI introduces unprecedented complexities in determining originality, authorship, and enforceability. Several jurisdictions including the US, UK, and EU currently deny assigning IP rights directly to AI systems, though select legal decisions, such as the Australian DABUS ruling, suggest emerging flexibility. These inconsistencies highlight a growing global divide. Key concerns include whether AI-generated output meets originality standards under copyright law, how inventive contribution is assessed in AI-assisted patent filings, and the risk of widespread infringement where AI training uses copyrighted data without consent. Additionally, uncertainty persists surrounding economic impacts such as content devaluation and cross-border enforcement of digital works. The study emphasizes that while AI enhances innovation, efficient IP management, and market competition, it simultaneously threatens traditional creative industries if legal protections are not restructured. Ultimately, the document argues for adaptive global reforms that balance innovation incentives, public access, and ethical governance ensuring that both human and AI-driven creativity can coexist and thrive.