UPDATE: A seismic shift is underway in the academic integrity landscape as universities across Australia confront the fallout from generative AI technologies. As of February 8, 2026, authorities confirm a staggering 219% increase in unauthorized AI usage among students at the University of New South Wales (UNSW) compared to the previous year, signaling a dramatic evolution in cheating methods.
In a race to reclaim lost market share, contract cheating companies are resorting to desperate tactics, including infiltrating classrooms and impersonating faculty online. The rise of AI has left these firms scrambling, with proven cases of contract cheating at UNSW plummeting from 232 in 2023 to just 132 in 2024, highlighting the rapid adaptation of students to new technologies.
Professor Phillip Dawson from Deakin University emphasizes that despite the AI surge, opportunities for traditional contract cheating remain. “There is still space for bespoke contract cheating. It’s more money and might involve a personal relationship with the person providing [the material],” he stated.
Meanwhile, Kane Murdoch, head of complaints at Macquarie University, stresses that universities must evolve to meet this changing reality. He warns, “Where universities have done little to change the reality – as opposed to the optics – of their assessments, cheating will be more than ever.”
The implications are dire. Financial reports reveal that Chegg, a prominent study help website, has seen its stock plunge from a pandemic high of $113.51 per share to just $0.69. This drastic decline has resulted in the company laying off 45% of its staff and filing a lawsuit against Google, alleging that AI-generated summaries have decimated its web traffic.
“It’s a market signal,” Dawson points out. “Chegg’s share price declines as institutions move away from online to face-to-face learning, then declines again as AI is on the rise.”
In a stark statement, Murdoch bluntly declared, “Chegg is dead.” The company faces additional scrutiny as it is being sued by the Tertiary Education Quality and Standards Agency (TEQSA) for allegedly breaching federal anti-cheating laws. Court documents filed in September reveal that TEQSA has identified instances of Australian university assignments being uploaded to Chegg’s platform, with responses provided by its “experts” within days.
TEQSA’s allegations highlight the serious concerns over academic honesty, stating, “It was obvious that the question was an assignment, and Chegg US and/or Chegg India, and each Expert, either knew or should have known that it may be work that a student was required to personally undertake.”
In response, Chegg has denied these allegations, arguing that TEQSA’s claims rely on selective examples that do not accurately portray its commitment to academic integrity. A spokesperson for Chegg stated, “The lawsuit brought by TEQSA is based on an outdated academic integrity policy, which was formulated long before the rise of AI and its profound impact on education and technology today.”
As the landscape evolves, universities must now navigate the complexities of AI in academic settings. This urgent situation prompts critical questions about academic integrity, the role of technology in education, and the future of learning itself.
With the rise of AI, students and institutions alike are left to grapple with the implications of these new technologies on education. What happens next could redefine standards of learning and integrity for generations to come. Stay tuned for updates as this story develops.
