Same issue as with cliffnotes. Easy way out means the easy way will be taken. Unless, you actually design a decent assignment or exam. In person essays or exams, heavily weighted, you are simply screwed if you didn't study the old fashioned way. A couple of my more serious classes were like this: no homework, no projects, entire grade based on 3 exams. That put the fear of whatever diety you subscribe to into you like nothing else to study hard and not fall behind. One bad exam you can't really come back from. Better luck next year when you retake it. Or, you dig in like hell.

They're only cheating themselves in a world that increasingly cares about knowledge (market trend of seniors being preferable hires to fresh out of school juniors) and not the piece of paper that "proved" you had such knowledge.

Agreed. I don't know how they plan to enforce this but this is way better than some other articles that have come up indicating educational bans on AI use, in-person proctoring, verbal assessments, pen and paper exams etc. This is the first attempt at an approach I've seen that doesn't seek to isolate education from reality; students that are effective at integrating AI into their work and actually understand what they're doing are going to get jobs, which is ultimately the goal of school.