Then use locked down computers that doesn't do anything, but display the exam and student can select multiple choice and type where prompted?

Its all solutions that existed before AI. Nothing has really changed over the past decade when it comes to not allowing or restricting electronics during exams other than schools forgetting they can do that.

Students looking up answers over the internet or getting text messages were just as much of a problem as AI if exams allowed students to bring those devices and use it freely. Even graphing calculator usage was restricted by smarter teachers aware of its note storing and program capabilities.