In 2022, when OpenAI launched ChatGPT and teenagers started outsourcing their homework to AI, adults began to panic. Within five weeks, New York City Public Schools had restricted ChatGPT on school networks and devices, citing its potential negative effects on learning and worries about the safety and accuracy of its content. Others followed New York’s lead. But as US school districts open for their third academic year since ChatGPT’s introduction, things have changed. Most of the biggest districts, including New York’s and the six next largest, are allowing and even encouraging some AI use—particularly by teachers, though increasingly by students as well. Bloomberg Businessweek Contributor Vauhini Vara joins Bloomberg Businessweek Daily to discuss.