Yes, the biggest problem with authentic exercises is evaluating the students' actions and giving feedback. The problem is that authentic assessments didnt previous scale (e.g. what worked in 1:1 coaching or tutoring couldn't be done for a whole classroom). But AI can scale them.

It seems like AI will destroy education but it's only breaking the old education system, it will also enable a new and much better one. One where students make more and faster progress developing more relevant and valuable skills.

Education system uses multiple choice quizzes and tests because their grading can be automated.

But when evaluation of any exercise can be automated with AI, such that students can practice any skill with iterative feedback at the pace of their own development, so much human potential will be unlocked.