Although AI-generated content is officially allowed by Google, I'm not sure that is the correct way to read this.
The funny thing about any kind of writing is that human beings can be counted on to only get the message they are prepared to receive.
When you read Google's developer guidelines for content, what they're saying is that as long as it is trustworthy, reliable, expert content, they will honor it.
They don't talk about how the content is generated.
They don't talk about how it's sourced.
They are just focused on what its effect on the reader is.
Now considering the fact that there are fact verification issues with artificial intelligence-created content, this would undermine at least a couple of the guidelines that Google is talking about.
Far from being a glass-half-empty or glass-half-full kind of situation, Google's policy doesn't focus on how content is generated.
This doesn't mean that Google encourages AI content generation.
It doesn't mean that there's some sort of official approval of content just because it's AI-generated.
Instead, it's just a reminder of the content quality that they've always required.
Now if this is going to encourage people to just crank out AI-generated garbage and flood Google with it, don't be surprised if Google strikes back by using its content parameters to filter AI content even harder.