A new wave of agentic AI tools that can autonomously complete whole courses has surged into higher education, prompting faculty backlash and immediate policy dilemmas for institutions. Developers market these systems as productivity boosters for students, but professors and academic leaders warn they undermine assessment integrity and complicate grading, plagiarism detection, and learning outcomes. Students report high anxiety about AI‑detection tools, fearing false positives and disciplinary action. Campuses face a twin challenge: integrating AI for instructional benefit while updating honor codes, detection protocols, and pedagogical design to protect learning authenticity. Universities will need clearer policies on acceptable AI use, more nuanced academic integrity processes that weigh intent and context, and investment in faculty development and assessment redesign to align evaluation with AI‑augmented learning.