A 'smart pen' that records the student's writing in some way, maybe? My first thought was a tablet that boots straight into a writing software but students should not be subjected to any amount of latency in their writing.
Practically, I think if you want the AI system to have a live view of what the student's doing you're going to have to replace one of either the tablet or the writing instrument. A wearable camera could work as well but there are issues with that.
there was a pen that used special paper to directly record your notes (15-20years ago)... should be possible nowadays to directly transfer this to a connected device and have it feed it to an llm.
and after looking it up, it appears they are still available: https://www.livescribe.com/landingpage/ls3_onenote/