A German regional court has ruled that Google is directly liable for the content of its AI search overviews. According to the court, previous limited liability protections for search engine operators don't apply to AI overviews. In this case, Google's AI had falsely linked two publishers to fraud and made claims that didn't appear in any of the linked sources. The ruling could set a precedent for AI-generated content liability worldwide.
All the arguments of “AI doesn’t impact copyright because it creates derivative content” were bound to lead here. You can’t (or at least shouldn’t be able to) have it both ways.