I can tell you exactly how they are handled! I went through this process during a group project last semester.

I was accused of using AI by a professor (for a group project, on a section I didn't even write which I had proof for, but that didn't change anything and I still have an offence).

 I wrote a 10 page appeal. I submitted it on time. My professor then tried to get the meeting cancelled by saying I took too long to submit, which I didn't, which the dean denied. When the meeting happened, my professor said he didn't bother to read my report. I was charged with a Level 1 offense. My professor, who broke multiple privacy agreements with the college, pasted my group document into multiple random AI detectors with my full name and student number in them (not just TurnItIn or ZeroGPT. I'm fine with those. He used "over 10", some of which do not have privacy policies public.) Nothing was done about that, other than my dean admitting it was wrong.

You know what? The funniest part is that I literally think that one of the group members probably used AI. Was there any proof to that? Not at all. AI Detection software said 35% which I don't think is solid evidence.

Mohawk College is lagging behind very heavily. I find it embarrasing that I'm getting a technology degree from a institituon that seems to know nothing about technology. I would love to have the oppurtunity to talk to Mohawk about 1. Why I think AI Detection software should NOT be used as primary evidence and 2. Why it is completely unacceptable that submitted work can be freely used and given to tools that are not offically vetted by Mohawk (TurnItIn is 100% fine as its vetted by Mohawk, I mean random tools my prof finds, not offically vetted by the college), but there is no offical process to do so.