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In the AI era, a widespread source of anxiety stems from authentic assessment when students use AI tools. We reframe it as an opportunity for intentional design. Drawing on empirical evidence from independent student surveys across two contexts (large psychology courses n=500+, small writing courses), we examine student intent and ethics surrounding AI use that may challenge faculty assumptions, including helpful AI use vs. cheating, logical reasoning around AI, and perspectives on discussing AI in classes. Two faculty with contrasting approaches share how student data transformed their assessment design, moving from anxiety to energized, purposeful teaching.