> Their entire business model was to funnel traffic to websites with their ads.

This doesn't change, they will still show ads somewhere around AI overview. As part of it if it is both technically feasible and legal.

The part of equation that is gone, is how organic traffic got to sites that published quality content. Now they might as well shutdown or switch to hard paywall. Both won't affect Google for few year, until websites (other than shops) are dead, knowledge stored in LLMs gets outdated and search engines have tiny index, that is a shadow of past size.