It's a marketing failure (or success, depending on how you see it).
replyAI is pretty useful for a great many things, but to really attract more and more investment the current technique seems to be convincing people that AI is useful for everything.
You're probably right, but since Google Search displays an AI-generated answer as the first result, most people end up using this feature more often than they originally intended. It's there now, and it will likely replace traditional search for the general public. Not entirely, but perhaps to a large extent.
replyEdit: corrected bad spelling with AI XD
Search and fact checking are different problems though.
replyLLMs are pretty decent at 'search' given the inherent knowledge compression, and some amount of inaccuracy is fine.