I assume they weren't advocating for using AI to just blindly give answers to the students...

You can argue the same about humans. Growing up, I definitely did encounter people who charged money for tutoring and never taught anything - they just gave the answers. Wasted money.

As for dealing with kids whose classmates' parents help them a bit too much... I honestly don't have a solution. From my experience growing up, beyond a certain amount of help, you definitely are hampering the kid if you overhelp them. I guess I was just fortunate that none of my peers' parents cared to, so I could still be near the top of the class.

Oh, and our final scores were heavily weighted on in-class tests/exams, so even if some kid's parents did overhelp, they wouldn't do well overall.