Higher education leaders report that student use of AI chatbots has become pervasive across classrooms, libraries and residence halls, forcing faculty to redesign instruction and assessment. At Flagler College, library officials noted a steady decline in tutoring requests since ChatGPT’s arrival, even as faculty raise concerns about students lacking foundational skills. Faculty and instructional designers are revising assignments, emphasizing process‑based evaluation, in‑class assessments and scaffolded skill development. Companies such as Anthropic and Google are marketing campus access to their models, prompting institutions to balance vendor partnerships with pedagogy and privacy safeguards. The development frames a sector‑wide debate: whether colleges should attempt bans, create AI literacy curricula, or restructure assessment to ensure graduates meet employer expectations in an AI‑augmented workplace.