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How should universities deal with AI?

In recent years, universities have devolved from being a hub for students organizations that are doing whatever it takes to survive, including accepting students from afar who may hardly or never attend campus, because they represent dollars. Take the University of Tasmania, for example. Once a sprawling set of buildings and ovals with a student vibe, the whole campus is closing to set up in a city office where everything can be run on line. Just when things couldn't get any worse for this new way of doing tertiary education, along comes AI. Now the lecturers and tutors have no way of knowing what a student knows. Idea- bring back physical university spaces so that tutors and teachers can once again get to know their students, and get to know what they know. That would be a good impact of AI - causing the reconnecting of people in universities.
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