The challenge there is scale. Most educational establishments aren't staffed for in-person assessments. Rearranging around that is a very expensive change to make.
(Apparently German and Austrian universities already have a strong culture of oral assessment, so they're ahead of the pack.)
This is especially true with the big push in the 2010s and during the pandemic for online education. Online education has been a godsend for those who are not served well by in-person education. Unfortunately, AI is completely undermining online asynchronous education since we can no longer reliably equate deliverables with genuine learning. Even in-person assessments have to be modified to deal with AI.
Generative AI has caused a lot of stress as a computer science professor at a community college, where I teach introductory courses in programming, data structures, and discrete math. I’m not anti-AI, but there are days as a professor where I curse the existence of ChatGPT due to cheating students turning in obvious slop.