[pdabbadabba]

I don't know if this is the way things should go, but it seems like a decent prediction about how they probably will. In fact, many law school exams are already administered using "blue book" software that functions as rudimentary word processors that lock down the computer's other functions for the duration of the exam. Perhaps other disciplines use this software too.

In the exam context, this software probably already solves the AI problem. Locking down the computer would not, of course, be a solution for other kinds of assignments, but I'll bet it won't be long until schools are using software like you described that are just do a lot of snooping instead of locking down the computer.

Unfortunately, the existing software is very clunky and not very reliable. And it doesn't seem like anybody has a strong incentive to improve it. (The schools license the software, and the schools understandably don't care all that much whether the software is nice to use.)