I think AI usage is going to be assumed, like Google searches can be assumed, and calculators can be assumed, for any take-home assignments.

As professors, we just have to level up our assignments. Make them more project-oriented rather than tests of rote knowledge.

In my class's final project, I let them use AI as much as they want. And basically, the quality of the final project is pretty much consistent with the performance of the students throughout the rest of the class. The bad students struggle to use AI effectively, the good students are using it well and making some pretty nice projects with it.