Faculty and academic leaders are grappling with a widening gap between student expectations for AI-enabled learning and the safeguards needed for academic integrity. The report describes how students increasingly use AI-powered tools—often for grammar and formatting rather than concept mastery—based on research from VitalSource and collaborators presented at the 11th IAFOR International Conference on Education. Survey responses suggest most students use AI “seldom” or “sometimes,” with limited sophistication for higher-stakes learning tasks. The key challenge for universities is not simply whether to restrict AI, but how to provide learners with purpose-built tools that align with faculty-selected content and explicit institutional policies. The story emphasizes a policy posture that treats AI use as an educational design question: classroom tools need precision, transparency, and pedagogical grounding, while institutions also manage concerns about integrity, fairness, and unclear rules.