Then any student who cares about his or her grades will change his or her study habits very quickly.
I would call that an optimistic take. It’s far more likely kids will complain, which leads to parents complaining, which leads to the teacher changing whatever was being complained about. From my experiences, school seems to not be a place where people take accountability, but instead, play a constant game of shifting blame when failure arises.
Yes, unfortunately, and we have already seen this happening for a while now with grade inflation:
https://www.ed.gov/about/homeroom-blog/addressing-grade-infl...
https://fordhaminstitute.org/national/commentary/grade-infla...
Edited to add: I think this is worth trying, but not nearly sufficient. I would not be surprised if all we see is that grades plummet because until the pen-and-paper tests the students have just been winging it with AI.