Content created with AI is not, by itself, a reason for Google to penalize websites. - Google has no issue with using AI to create content.
What matters is the kind of content you produce. If it is unoriginal, low-value content that already exists in large amounts across other websites, then yes, such content can harm your site.
Over time, having a large number of pages with this type of content can be interpreted by Google as an attempt to manipulate search results by creating many pages solely to capture traffic. That’s why, if you use AI for content creation, it’s not enough to simply edit, rewrite, or add a few quotes, as many SEO specialists suggest. You need to pay close attention to making the content genuinely more original - including specific details, entities, and insights that do not appear on competing pages. In that case, Google may evaluate such content highly and reward it with better rankings.