Teach the generator via an in-class markup of the output. Challenge the students to out-produce the AI.
There are testing systems that already use AI to grade essays via a first pass score before passing over to a human grader (who might be overworked). Better to open discuss the AI grader and how it works than act shocked that smart students will game the system.
1. Here is what the generator produces.
2. Here is why you will fail if you rely on it.
3. Assignment: Write a better essay using [these listed points] than the AI.
4. (extra credit) Write an AI that produces better output.
I put the burden on the educational system in terms of a challenge.
Misses the point. Are students to use the generator should it not have the flaws you teach them? Is the purpose to deliver non-flawed essays, or to have students rise to the challenge of producing them?
Rising to the position of being able to use a good generator is not the goal.
I just feel this is yet another example of schools not being adapted to the Information Age.