Colleges report that AI chatbots have become a de‑facto competitor to campus instruction and tutoring services, with some institutions seeing declining tutoring demand as students rely on model outputs. Faculty and library leaders warn that polished AI responses can mask skill gaps—especially in writing and quantitative coursework—and are reworking assessments to ensure learning outcomes. Researchers separately documented “inter‑model homogeneity,” showing many large language models produce highly similar prose, which undermines originality detection and complicates academic‑integrity enforcement. Institutions should accelerate policy updates on acceptable AI use, invest in assessment redesign, and expand faculty training on AI‑aware pedagogy.