Colleges are shifting from blanket AI bans to agile, co‑created policies that balance academic integrity with equity and pedagogical innovation. Projects from institutions including the American University in Cairo emphasize faculty, student and staff cocreation of ‘agile’ AI guidelines that can be updated quickly as tools evolve and that consider which groups of learners might be disadvantaged by policy changes. At the same time instructors are exploring AI as an engine for differentiated instruction—using generative tools to produce tailored assessments, scaffolding and practice materials at scale. Administrators and instructional designers say these approaches require clear norms, frequent review, and teacher training so AI supports learning rather than undermines assessment validity.