This chapter explores the transformative impact of generative artificial intelligence on inquiry-based learning in educational assessment. Generative AI technologies have revolutionized traditional assessment methods, enabling dynamic, individualized learning experiences that meet individual student needs. By harnessing the power of artificial intelligence, teachers can create assessments that promote critical thinking, conceptual understanding, and deeper engagement with content. The chapter begins with an overview of the theoretical foundations of generative artificial intelligence and its integration into educational frameworks such as constructivism and technology-enhanced learning. It discusses practical applications of artificial intelligence in creating dynamic assessment environments. Examples include tools like Knewton and MATH from Carnegie Learning, which adapt learning methods based on student performance.