The courts haven't decided, though there's definitely a possibility that all generative AI tools get banned due to copyright violation.

Even worse, the AI hallucinations will quickly overwhelm the fact-based course content, so you'll still need a qualified instructor just to manage the course's content and fact check it.

The courts have already decided that whoever uses AI incorrectly (lawyers, car dealerships, etc.) has to deal with the consequences, so offering coursework with multiple AI hallucinations would probably expose the community college to liability.