The problem that they're going to have with this is that the schools have already been covering for bad teaching and lost students by making all the criteria fuzzy, and relying on homework that kids could cheat their way through for a large part of the grade i.e. credit for participation. Now, with AI, there's no way to deny that kids are cheating, and that's thrown the institution into a difficult position.
There's no educational threat from AI, AI will only help people learn. The threat is to the institution, which runs on a lot of dishonesty. We'll have to learn to tolerate some kids being left behind and make the effort (and create the systems) to move them forward again, instead of pretending like everyone is handling it. A system that can't deal with every kid losing a year of school, like what happened during covid, is a system that is focused more on schedule than student.