Student anxiety around AI in assessments is intensifying as universities roll out generative AI policies and AI-detection workflows. A new survey of Australian students reports AI-related stress tied to negative cognitive impacts, privacy concerns, grade fairness, and the risk of being accused of cheating. A key fear is being flagged for misconduct despite doing nothing wrong. The survey notes widespread use of AI tools among students, but the institutional response—how universities investigate flagged work—may be the dominant source of stress. The findings echo wider concerns across higher education about procedural fairness: whether misconduct referrals trigger consistent, transparent review rather than automated or punitive outcomes.