Participatory Co-Design and Evaluation of a Novel Approach to Generative AI-Integrated Coursework Assessment in Higher Education.

Generative AI tools offer opportunities for enhancing learning and assessment, but raise concerns about equity, academic integrity, and the ability to critically engage with AI-generated content. This study explores these issues within a psychology-oriented postgraduate programme at a UK university. We co-designed and evaluated a novel AI-integrated assessment aimed at improving critical AI literacy among students and teaching staff (pre-registration: osf.io/jqpce). Students were randomly allocated to two groups: the 'compliant' group used AI tools to assist with writing a blog and critically reflected on the outputs, while the 'unrestricted' group had free rein to use AI to produce the assessment. Teaching staff, blinded to group allocation, marked the blogs using an adapted rubric. Focus groups, interviews, and workshops were conducted to assess the feasibility, acceptability, and perceived integrity of the approach. Findings suggest that, when carefully scaffolded, integrating AI into assessments can promote both technical fluency and ethical reflection. A key contribution of this study is its participatory co-design and evaluation method, which was effective and transferable, and is presented as a practical toolkit for educators. This approach supports growing calls for authentic assessment that mirrors real-world tasks, while highlighting the ongoing need to balance academic integrity with skill development.