AI use in classrooms is forcing institutions to revise both learning design and academic integrity approaches. One report highlights a mismatch between what students expect and what they can actually do: many students use AI only “seldom” or “sometimes,” often for surface tasks like grammar and formatting, with ongoing uncertainty about integrity and fairness. Another analysis argues generative AI changes the target of instruction itself: courses must shift from artifact-based assessments toward verifying the underlying mental models and reasoning processes that artifacts represent. The emphasis is less about blocking tools and more about redesigning learning outcomes in AI-enabled environments. Together, these developments matter for higher education operators because they affect policy, training, and assessment systems. Academic affairs teams face the need to implement AI-appropriate pedagogy while updating integrity frameworks in ways students can understand and faculty can execute.