It seems obvious to me that there’s a huge gap between a search result, which is a link and an excerpt where the operator of the linked site is clearly responsible for the content, and an AI overview, which mixes information from multiple sources with generated nonsense.

Google should absolutely be liable if it generates overviews containing defamatory lies.

It is not user submitted. These shitresults are made by Google, by their servers. They chose to put it there, knowing it may be inaccurate. So they are fully responsible.

Google said it takes swift actions against violations of its policies ​for AI Overviews.

LOL Hasn’t it just been proven right here in this case that the opposite is true?

If I have read the verdict properly, even after being officially noticed and legally requested to stop the offending statements, the company did not react at all and the AI repeated it’s crap.

Has there ever been a litigation that Google has lost that they didn’t appeal if appeal were available?