Universities were already in a tricky spot. They went from elite institutions offering intellectual edification to the upper crust of society to broad institutions promising job opportunities to everyone (yes, many shades of grey here, but I'm talking directionally).

University diplomas have long stopped being entry tickets to the upper middle class, but most people still go to university for the job opportunities (at least ostensibly).

When AI obviates the work that a diploma used to reward, the meaning of diplomas will be further watered down.

For universities to keep their standing, I wouldn't be surprised to see more hand-written in-person exams or exams that look more like a thesis defence, where the written deliverable is just the starting point, not the thing being graded.

In other words it's a problem when poor students have the same advantage as rich students. The goal of education is to teach or to extract money and decide social hierarchies?