They are undoubtedly cutting into profits. When I Google now, I wait for the AI summary (come to think of it, the fact that it takes 3-5 seconds to appear might not be organic...) and then click the references, rather than clicking through to search results. They're probably losing a LOT of reason for people to fight for SEO now. Why bother, Google users will just read the summary instead.

I suspect that they're hoping to "win" the AI war, get a monopoly, and then enshittify the whole thing. Good luck with that.