Reimagining Assessment for AI-Integrated Learning: A Transnational Case of Chinese Students in Australian Higher Education

Abstract—The rapid rise of generative Artificial Intelligence (GenAI) presents both challenges and opportunities for higher education assessment design. This study reports on the redesign of assessments in the Professionalism and Entrepreneurship unit, delivered by an Australian university to Chinese students in a transnational program. With human ethics approval to collect general sentiments about GenAI use, the project aimed to integrate GenAI ethically and transparently while maintaining academic integrity and cultural inclusivity. Two major assessments, one group-based and one individual, explicitly incorporated GenAI as a legitimate learning partner and included rubric criteria evaluating students’ reflective and critical engagement with Gen AI. Findings indicate that structured GenAI integration improved student confidence, language clarity, and critical thinking, while reflections revealed growing ethical awareness and accountability in GenAI use. The design also supported linguistic and cultural inclusivity by legitimising GenAI-assisted translation and scaffolding reflective inquiry for students accustomed to structured learning environments. The paper presents a culturally responsive framework for GenAI-enabled assessment design that promotes authentic learning, equity, and responsible innovation across transnational higher education contexts. Index Terms—Assessment design, Generative AI, Transnational education, Chinese students, Higher education, Pedagogy