New data shows widespread AI use across university workforces but a worrying lack of institutional guidance: many faculty and staff are using generative tools without clear policies, leaving departments uncertain about governance, privacy and instructional standards. The disconnect risks inconsistent student experiences and compliance gaps as campuses race to integrate AI. Duke University’s Fuqua School of Business offers a concrete case: the school is piloting an AI‑enabled classroom system that records, transcripts and attributes participation to individual students to inform grading and feedback. Fuqua’s approach underscores both the pedagogical potential of AI and the thorny privacy, consent and equity choices institutions must resolve before scaling classroom analytics. Leaders should prioritize clear AI policies, opt‑in frameworks, and professional development for faculty to align tools with pedagogy and compliance.