Higher education must adapt teaching and assessment to AI-driven changes. Some institutions still ban AI in classrooms to preserve traditional methods. The University of Chicago now bans AI in core social science courses. A Socratic AI tutor prompt helps faculty integrate active learning without extra cost. A new study reviews 73 cases of AI use in higher education assessment. The study identifies three major assessment approaches in response to AI. It also lists five ways educators use AI across assessment processes. The findings show AI is reshaping assessment design and delivery. Faculty are urged to adopt these tools to prepare students for AI-dependent workplaces.