That's assuming they want to solve it. A lot of administrators live in lalaland because it suits them to. It is in the interest of society to fail cheaters and frauds before they graduate, but it costs the universities money to do it properly. So they will only address the problem if it comes to public attention.
That's a trend that we've seen over and over, for example with the corruption over admission to Ivy league universities. In fact chatGPT doesn't really change the landscape that much. All it does is democratising contract cheating, on which most universities only apply band aids. It might end up being a good thing, but only if it does attract public attention to the issue.
exams now count for 100% of your grade
these aren't insurmountably difficult problems for universities to solve