What do you think college graduates should know about AI?

That the LLM crawlers are destroying the web faster than all the walled gardens put together. That the people behind LLM training have no morals whatsoever and will steal all of your IP in the blink of an eye. That the A is correct but the I is not.

How much do you think they should rely on AI tools?

Not at all - nobody should rely on anything so prone to produce such utter garbage. Sure use it if you like but you'll spend more time proofing it than you will save. And even then you'll miss something and that will cost you big time. If you're lucky, nobody will die.

There you go. That should bring them down to earth. :-)