What is the alternative? This is not a minor bug; it is a core defect of the current generation of AI. Googles only option is to field AI within the constraints of current technology. Otherwise, they risk loosing marketshare to someone who will.
If the public looses trust in AI, that is not a problem for Google. Their position in the non-LLM search market is much more dominant than their position in the LLM search market.