Institutions and faculty are shifting from blunt prohibitions on generative AI toward governance models that integrate tools into pedagogy and oversight. A study found many faculty easing outright bans, adopting targeted policies that differentiate research, assessment and student work. The new approach reflects broad recognition that AI is now embedded in academic workflows. Boards and governance professionals are responding in kind: organizations such as AGB are offering training on practical, governance‑aligned AI use for trustees and board staff. Sessions focus on preserving oversight, documentation, and institutional control while leveraging AI to improve board administration and meeting records. The transition signals a phase in which campuses refine boundaries around acceptable use, assessment integrity, and faculty training rather than relying solely on prohibitions—placing emphasis on policy design, staff development and measurable outcomes.