Artificial intelligence is reshaping education, with both positive and negative effects. In K-12 schools, a recent executive order by President Donald Trump has mandated the introduction of AI courses to prepare students for a technology-driven workforce. Educators and policymakers are working to integrate AI into curricula while considering its effects on learning and creativity. In higher education, the use of generative AI tools such as ChatGPT, Gemini, Claude, and Copilot has led to widespread academic dishonesty. A UK university study found that 94% of 100% AI-generated essays passed undetected by graders, and there was an 83.4% chance these AI submissions outperformed random real student work. Surveys indicate that nearly 90% of college students have used AI for assignments, and 90% of Harvard undergraduates reportedly use generative AI. Assignments are increasingly seen as 'hackable' by AI, and both students and teachers are using AI for writing and feedback. Detection methods like Turnitin's AI detector have proven unreliable, with professors failing to flag 97% of AI-generated work in studies. Some educators have reverted to handwritten or oral exams, while others use AI to grade and provide feedback, further blurring the distinction between human and machine contributions. AI's reach includes fraudulent activity, with AI bots enrolling in California community colleges to obtain financial aid. From March 2023 to March 2024, over $10 million in federal aid and $3 million in state aid were stolen, and fake applications now account for 34% of total applications. Columbia University has partnered with OpenAI, and tools like ChatGPT Plus are being offered free to students during finals. Startups such as Cluely, which raised $5.3 million and launched with a $140,000 campaign, are developing real-time AI feedback tools for students. The widespread reliance on AI has prompted concerns among educators and researchers about the erosion of critical thinking and creativity. Studies link AI usage to a decline in these skills, and both students and teachers are questioning the future of academic integrity and the role of AI in education.