Colleges are facing intensifying challenges in implementing AI policy as student and labor-market expectations diverge. Reporting highlights that many Gen Z students say they distrust AI-enabled systems, while Gallup polling shows Gen Z excitement and hope around AI have dropped. The same debate is landing on campus policy: over half of college students report their schools discourage or ban AI use, while faculty perceptions of graduate readiness also underscore a gap between classroom rules and workplace AI literacy expectations. Separately, higher education leaders discussed how to prepare students for AI-altered work without relying solely on short credential programs. The featured approach emphasizes teaching AI-resilient skills at the task level and aligning curriculum to adaptable competencies employers increasingly request.