Colleges and universities continue to grapple with generative AI’s classroom impact as faculty, administrators and legal teams balance pedagogy, integrity and student well‑being. Coverage shows campuses remain 'still working out' AI policies three years after ChatGPT’s debut, while individual professors report reshaping humanities teaching to emphasize human judgment and collaboration with chatbots. Institutions face conflicting pressures: adopt AI to modernize instruction and career readiness, or restrict tools amid academic‑integrity and mental-health concerns. Campus leaders should advance clear AI-use policies, invest in faculty development on hybrid assessment, and align academic integrity code revisions with counseling and accessibility services.