In this context, AI refers to "Generative Artificial Intelligence," which is capable of de novo content creation. You may be familiar with some agents (e.g., ChatGPT, Gemini); Adams State University licensed a version of Gemini which is compliant with legal and privacy protections (i.e., FERPA-compliant, does not use Adams State material to train models) (Help Page).
Adams State requests that students, staff, and faculty use Gemini for that reason. Also, Adams State forbids staff/faculty use of the free version of ChatGPT.