An Australian university, Macquarie University, has introduced AI chatbot technology into two psychology subjects, marking a growing trend of integrating artificial intelligence into education. The AI tool, called Virtual Peer, is designed to interact with students, ask them questions, and guide them through scenario-based learning exercises. This system is part of each week’s learning in two mandatory psychology units, though the university emphasized that the AI activities are optional and meant to supplement, not replace, traditional learning methods such as online readings, quizzes, and videos. Students are assessed through separate research tasks and exams, and neither the AI nor the core content is mandatory. The subjects previously included in-person classes during the first semester of this year but were offered exclusively online in the second. In-person classes are expected to return in 2027 on an alternating basis, giving students the option to choose between online or in-person formats. Previously, the online versions included optional weekly tutorials with paid academics via Zoom. Now, these classes are conducted entirely through Virtual Peer and other digital resources. Some students, however, have expressed concerns about the shift. One anonymous student described the experience as feeling "short-changed," saying the AI seemed to replace human interaction. "Instead of a group discussion or a tutor teaching you, it's a class activity done with a robot," the student said, adding, "I feel like I'm teaching this robot how to take jobs away from my teachers." Macquarie University clarified that Virtual Peer was developed in collaboration with educators to support, not replace, human teachers. Professors uploaded and verified the content used by the AI, which the university claims makes it more accurate and less prone to "hallucination"—a term referring to when AI generates content without proper evidence. The university also stated it can monitor student interactions with the AI. Despite this, both subjects still offer optional, unstructured Zoom sessions with paid tutors, though attendance varies and tends to rise near assessment deadlines. The cost of each psychology subject for Australian students with government support is around $2,174, and a full undergraduate degree can now exceed $50,000. The use of AI in education is expanding, with Macquarie being one of several Australian universities, including the University of Melbourne and the University of Sydney, to adopt AI tools. While some institutions view AI as a way to enhance learning, concerns about the human element in education are growing. Meena Jha, an associate professor at Central Queensland University, noted that replacing in-person teaching with AI chatbots is a new development in her research. She emphasized the importance of human interaction for student engagement. Meanwhile, the University of Sydney has developed its own AI platform, Cogniti, and is sharing it with other institutions, envisioning a future where AI could provide personalized learning experiences. However, staff unions have raised concerns about job security and workload, with some fearing that AI could lead to fewer academic roles. As AI continues to evolve, universities and educators are navigating the balance between technological advancement and the irreplaceable value of human teaching.