these students are proving that AI is as capable as a student (in their eyes at least) which bodes very well for employers. Limitless numbers of cheap workers.

Limitless numbers of cheap workers are great for employers when they have them. Not as great when everyone has them.

Who is going to pay for the goods or services provided by your limitless number of cheap artificial workers when everyone else has also replaced their natural consumer human employees with their own cheap artificial workers?