This paper explores the different types of assessment methods and proposes novel assessment methods to equip law students with the necessary competencies for navigating an AI-driven legal landscape. It further considers best practices attached to Gen-AI inculcated assessments. The scope of this paper will focus on analysing the limitations of traditional assessment practices, such as exams and essays with standardised memorandum answers, in evaluating students’ ability to responsibly utilise Gen-AI tools. It will delve into the changing dynamics of legal practice due to AI integration, highlighting the ethical and legal challenges that future lawyers will face. The core of the paper will center on proposing and discussing innovative assessment strategies, including simulated legal scenarios, ethical case studies, and collaborative AI assisted projects. The paper illustrates that traditional assessments are inadequate for cultivating AI literacy and responsible Gen-AI usage among law students. The paper provides suggestions for updating traditional assessment strategies by inculcating AI into them to prepare the students for the demands of the modern legal profession. The paper further addresses the necessity to provide support to students and educators for successful integration of these assessments through faculty training, AI funding, and leveraging communities of practices. Ultimately, the paper provides practical recommendations for law schools to adapt their curricula and assessment methods, ensuring future lawyers are both technologically proficient and ethically responsible in their use of Gen-AI.