1. Get students to work on a more complex than usual project (in relation to their previous peers). Let them use whatever they want and let them know that AI is fine.
2. Make them come in for a physical exam where they have questions about they why of decisions they had to take during the project.
And that's it? I believe that if you can a) produce a fully working project meeting all functional requirements, and b) argue about its design with expertise, you pass. Do it with AI or not.
Are we interested in supporting people who can design something and create it or just have students who must follow the whims of professors who are unhappy that their studies looked different?