I have friends that started a startup trying to tackle this problem. They actually found ways for certain types of exams in certain subjects to make cheating exponentially harder and also provide less of an advantage, so much so that if the student is cheating they are effectively learning.

Some of their stuff works really well, and they have prof customers who love it. The CEO went on a tour to visit their biggest customers in person and several of them said they couldn't imagine going back.

Unfortunately as a whole the industry is not interested in it, aside from a few small niches and department heads who are both open minded and actually care about the integrity of the education. There have even been cases where profs want it and the dean or admin in charge of academic integrity vetoes its adoption. I've been privy to some calls I can only characterize as corrupt.

There is something deeply broken about higher Ed, the economics, the culture of the students, the culture of the faculty, the leadership... This isn't an AI problem it's a society problem.

When the students genuinely want to learn something and they are there for the knowledge, not the credit, cheating isn't a problem.