AI integration into education accelerates rapidly, raising new challenges for students, teachers, and policymakers. Research indicates AI-simulated students outperform real students in academic tasks but with different error patterns, potentially distorting teaching and assessment. States are increasingly issuing guidance and developing professional development programs for educators to navigate AI's complexities. Meanwhile, concerns grow about AI diminishing critical thinking as students misuse tools like ChatGPT, highlighting the need for vigilant parental and institutional oversight.