Soon we'll have a system where students use AI for homework and teachers use AI to grade it. I'm sure it's already happening.
But yes, it's happening. If I had 300 students, I couldn't do this. I'd need a bunch of TAs or some AI. Or just pure autograding, which I always hated since the person who did nothing gets the same F as the person who left out a semicolon.
And students are definitely using AI, evidenced by their stratospheric code improvements in the last 18 months.