I think we have a solution for the evaluation part: the overwhelming majority of a student's grade is computed from in-person assessments only. Some instructors allow repeats on exams as well.
The teaching part is as hard, but it has always been hard. The students you get one year are completely different the next year, for various reasons. As long as you have competent administrators, all is good--this is what we sign up for.
If tests evaluate understanding is up for debate. But that is what we switched to in the sciences.
Universities are going to have a reckoning moment, as most degrees 1) are not economically viable and 2) don't make sense to be taught in the current mode of instruction.
(Apparently German and Austrian universities already have a strong culture of oral assessment, so they're ahead of the pack.)
Generative AI has caused a lot of stress as a computer science professor at a community college, where I teach introductory courses in programming, data structures, and discrete math. I’m not anti-AI, but there are days as a professor where I curse the existence of ChatGPT due to cheating students turning in obvious slop.