This paper examines the evolving role of generative artificial intelligence (GenAI) in education, emphasizing its dual potential as both a transformative tool and a source of ethical concern. Tracing AI’s educational use from early systems like PLATO to modern platforms such as ChatGPT, it highlights how GenAI facilitates personalized learning, automates feedback, and enhances accessibility. However, the widespread misuse of these tools—particularly in academic dishonesty—has outpaced the capabilities of current detection mechanisms, prompting institutions to establish independent AI use policies. With no standardized regulations governing AI’s role in education, challenges such as data validity, bias, intellectual property, and regulatory oversight remain unresolved. This paper advocates for interim measures including updated academic honor codes, increased student-faculty collaboration, and the adoption of responsible AI frameworks to promote ethical use while preparing for a more structured regulatory future.