Oral and written in class assessment was the only way you earned a grade in the Soviet Block before the fall of the Berlin Wall. There were no subjects where you could take a multiple choice or at home exam, or just present a research paper. You were given a set of topics, about 60 per class, that you had to know well enough to have a one hour oral examination/conversation with the professor. The way you got the topic is to reach in a bowl which contained the topics written on folded pieces of paper, and pull one - basically, a lottery. It was grueling, and people tried to cheat with outlines written in pt2 font on a long piece of paper hidden in your sleeve, but cheating was an automatic fail.
That is the good (but impossible to return to) way to exclude this and future AI iterations from the "receiving a grade on genuine knowledge" situation.
On the other hand, the AI in its current form can only regurgitate, quite elegantly, original human work. It cannot, at this point, make connections and be "creative." It will need human product to grow its own knowledge. But, there will be fewer and fewer people who may be able to supply this new knowledge if the current and future generations do not learn the hard work of summarizing information and extracting meaning from random connections.