Generative AI has the potential to transform higher education assessment. This study examines the opportunities and challenges of integrating AI into coursework assessments, highlighting the need to rethink traditional paradigms. A case study is presented that explores AI as an auxiliary learning tool in postgraduate coursework. Students found AI valuable for text generation, proofreading, idea generation, and research but noted limitations in accuracy, detail, and specificity. AI integration offers advantages such as enhancing assessment authenticity, promoting self-regulated learning, and developing critical thinking and problem-solving skills. A holistic approach is recommended, incorporating AI into feedback, adapting assessments to leverage AI's capabilities, and promoting AI literacy among students and educators. Embracing AI while addressing its challenges can enable effective, equitable, and engaging assessment and teaching practices. Universities are encouraged to strategically integrate AI into teaching and learning, ultimately transforming the educational landscape to better prepare students for an AI-driven world.