A new report found that two-fifths of UK universities lack a publicly accessible AI policy, and critics argue that many existing policies operate as compliance tools rather than genuine learning supports. The Higher Education Policy Institute (Hepi) paper analyzed 163 institutions with degree-awarding powers and found only 96 had discoverable AI policies. Hepi’s analysis highlighted a “systematic gap” between what policies say and what they do, including cases where institutions promise support while effectively threatening disciplinary action and establishing audit trails. The report describes this mismatch as a structural result of pushing AI guidance into governance frameworks built around detection and punishment. The findings point to an uneven student experience and uncertainty for educators trying to align AI use, academic integrity, and professional development. It also raises compliance challenges for regulators and external stakeholders seeking consistent policy expectations across institutions. For US and international higher education leaders, the episode mirrors campus-level governance tensions: institutions need workable AI literacy guidance that supports learning without defaulting to punitive surveillance.