Faculty and universities face increasing legal exposure when they respond to suspected AI misuse on coursework and exams, according to a legal-focused analysis. The piece highlights disputes where universities treated alleged AI-generated content as academic misconduct or expelled students, arguing that institutions must build the kind of procedural record courts expect—notice, formal hearings, evidence-based findings, and appropriate appellate rights. It points to cases including a University of Minnesota expulsion that courts upheld after a remote qualifying exam comparison to ChatGPT output, contrasted with a New York court ruling annulling an Adelphi University finding and ordering expungement. The practical implication for higher education leaders is that AI-detection reliance and inconsistent appeals procedures may be a litigation trigger, not just an academic standards issue.