In summary: under the pretext of showcasing a writing assistant / tool, Google scares the (s... out of) newspaper companies by showing them an AI that can write news articles all by itself.
Or, it's Google firing a shot across the bow of newspaper companies that think Google should pay to use their content.
Google's modus operandi has always been to automate people out of the equation. This lets Google have its own news operation, without paying for all those pesky journalists.
I wonder if the AI will eventually write stories about any of the bad things that Google does, or just the good things.