Unis are looking into how to harness ChatGPT. The Genie is out of the bottle so it's no use denying that people can access ChatGPT. Trying to punish students for using ChatGPT is like punishing students 20 years ago for using the 'internet'. Some engineering departments are looking at how to use ChatGPT to help students code - the issue being who owns the intellectual property on ChatGPT.
The short answer is that all unis are drawing up 'running rules' or policies on the use of ChatGPT. At one end is the requirement that students declare they have used ChatGPT - just as students would declare the books and journals they have referenced for their essay. At the other end of the spectrum, there is software that can detect if students have used AI to write parts of their essay (writing style, sentence construction etc) and they may use this AI to spy on whether students have used ChatGPT.