I agree 100%. This AI wave hopefully if will force universities to rethink the way students are assessed.
When I was faculty I had the luxury to teach small classes, and I could always be extremely flexible with assessments so I could assess students as the course progresses, or I could make it project-based, or a 1-on-1 oral exam. But I had colleagues that were teaching a class of 300 students, which meant most of the exams were looked at only by teaching assistants, or they were so heavily automated (e.g. multiple choice) that these days they could totally be fooled by an LLM. Something needs to change and it will (fingers crossed).