Campus learning‑management vendors and administrators are confronting a two‑front challenge: technical limits to reliably detecting agentic AI use and uneven institutional readiness to integrate AI into teaching. Blackboard executives acknowledged that current technologies cannot reliably detect AI agents executing multi‑step tasks, prompting the company to push for assessment redesign rather than detection‑first approaches. At the same time, a sector survey found institutional adoption of AI jumped from 49% to 66% year-over-year, but only 43% of institutions have AI in their strategic plans and many cite data privacy and training shortfalls. Universities are rapidly deploying AI tools without consistent governance, leaving gaps in faculty training, privacy protections, and assessment integrity. Experts recommend shifting from policing to assessment redesign—emphasizing authentic tasks, human-in-the-loop checks, and institution-wide AI strategy that ties investment to training and accountability.