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Formative assessments are foundational to effective teaching and learning, yet the widespread availability of Generative Artificial Intelligence (Gen AI) has complicated the instructional usefulness of these practices. 1029 US and UK educators across K-12 and Higher Education settings were surveyed to understand educators’ familiarity with Gen AI, their attitudes towards it, institutional policy presence, and how these factors relate to their formative assessment practices. Results indicate that the influence of policy on AI use in education is not uniform but may vary according to educators’ sentiment toward the technology. Thus, institutions should account for educators’ feelings about Gen AI when adopting policy, particularly if they aim to impact AI integration in schools.