This chapter examines the emerging role of generative artificial intelligence (AI) in transforming assessment practices within Philippine teacher education. Drawing from case studies of pre-service teachers across various disciplines, it explores how AI-powered tools support the design, implementation, and evaluation of assessments tailored to diverse learning needs. The chapter analyzes both the pedagogical benefits, such as enhanced efficiency, individualized feedback, and adaptive testing, and the ethical challenges related to bias, academic integrity, and cultural sensitivity. Practical recommendations are offered for teacher education institutions, policymakers, and educators, emphasizing ethical integration, curriculum design, infrastructure development, and capacity-building. The findings contribute to ongoing global discussions on responsible AI adoption in education, particularly within developing contexts.