Google got complacent, it is easy as that.
Remember back in the 2010s? Google was always innovating and coming with all sorts of interesting and useful gadgets. Like the Google Home, Google Wifi, Google Phone, and so on.
Then since 2020s, a huge amount of projects were discontinued. And I'm not sure if this caused the CEO and the management to change their approach... They seem to focus on just milking their current products, namely Google Search and Youtube. They just find ways to fuck whitehat sites further and kept finding distracting ways to reduce traffic for organic websites. Then they kept screwing up whitehat sites with each update, especially last year if you all recall. In the past, Google updates were actually helpful (e.g: MEDIC update), but all the current updates (and unconfirmed updates along with strange fluctuations and traffic throttling) now are just to push webmasters to go for paid ads.
Well, it seem to work at first... Their ad revenues were through the roof! And I think that made them more complacent further thinking they could just kept monetising their current products and screw content creators further.
Then when Microsoft came up with chatGPT integration to Bing, it is like Google was caught with their pants down... They desperately tried to get the media's attention by bringing up "Apprentice Bard". When Microsoft decides to showcase it, Google suddenly rushed and said they are doing it too. It's just pure FOMO. And yeap, they screwed up so badly.
The only person they can blame is themselves for being so arrogant and stop being the innovative (and once nice and cute) company they once were.
What's worse is Bard doesn't cite or give any link clicks to the answers they've gotten from. I think they're going to face another lawsuit soon enough.
The simplest way to know how fucked Google is would be to look at their next few quarter earnings report.