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.
I imagine the play will be to not offer AI anything in Germany and fan the flames of “we’re being left behind in technology”* paranoia amongst politicians until they legislate a special carve out.
* Not my opinion, but it is a thing that the briefcase class likes to say to each other to give them an excuse to dome off big tech CEOs.