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.
Sometimes it does not even matter if it is truth or not.
That may actually be such a case here: Factual statements that can create bad reputation for somebody (or some company).
That cannot be libel in most jurisdictions. I’m pretty sure that’s not the case here.