Earlier quoted context omitted.
"best not to blame the students" There are dozens for every one who didn't get the opportunity to attend an Ivy. The penalty for cheating should be automatic expulsion. I'll note as a hiring manager the college degree won't be worth shit unless the school can show their students have any integrity.
The penalty for cheating should be automatic expulsion. Universities need to stay ahead of how people actually work. Framing the use of AI as 'cheating' gives a university a reputation that it isn't keeping up with industry, which has a wildly negative impact on admissions. You can't expel people for 'working like they do in the real world'.
You totally can, though. In the real world if I can't remember something, I might look it up in a textbook. Closed-book tests have historically been a totally accepted practice, though, and getting caught bringing notecards with textbook info secretly into a closed-book test would absolutely bring about disciplinary action.