I’m not sure what “used AI” means here, and the article is unclear, but it sure does sound like he did have it write it for him, and his parents are trying to “save his college admissions” by trying to say “it doesn’t say anywhere that having AI write it is bad, just having other people write it,” which is a specious argument at best. But again: gleaned from a crappy article.
You don’t need to be rich to change the law. You do need to be determined, and most people don’t have or want to spend the time.
Literally none of that changes the fact that the Universities are not, themselves, the law.