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AI vs Cobbling words together the old fashioned way

People at my office have begun stirring about a recent article from Google about AI content. (Link in replies below.)

Help me cut through the noise. Is it saying that AI articles aren't going to rank, or worse, be penalized? Regardless of whether you're in the "AI is a huge help" or "AI is for lazy people" camps, or fall somewhere in-between, I just want to know if Google cares if an article is written by AI or not.

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