Universities are bracing for intensified AI-related academic integrity and student well-being pressures, as schools grapple with how to detect generative tools and how to respond when students are flagged. An Australian survey of more than 1,200 students found widespread anxiety tied to AI use, including fears of being falsely accused of cheating and concerns about privacy and unfair grade competition. The findings align with reports from academic misconduct proceedings after generative AI tools entered assessment workflows, with institutions emphasizing investigation rather than automatic findings. Still, students report stress linked to the institutional response—particularly when flagged submissions trigger further review. In the US policy sphere, a Senate hearing examined the need for guardrails that preserve “human judgment” in classrooms while supporting teacher training and clearer expectations for appropriate AI use. Witnesses said the field lacks federal guardrails and that states are moving through policy tests at different speeds. Across these threads, education leaders are being pushed simultaneously on assessment integrity, privacy, and operational readiness for AI-enabled learning environments.