My prediction has always been that schools will shift to proctored exams, and job placement rates will eventually be the only metric that matters for students. I think it's an advantage for the schools to ignore AI for as long as they can though, since higher pass rates means more students paying the full cost of tuition, and better graduation statistics.
I think the problem is we think using another KPI will obviously solve the problem. Using job placement as a rate just encourages nepotism and self dealing though - uni's have been caught giving say, an average salary of an outgoing degree by including an NBA player who got it before making millions shooting hoops.