But that is not what Google is referring to. They are saying that schools cannot have the normal search without the AI hallucinations. Also, if AI is meaningfully involved with Google's traditional search results, then that only serves to explain why they are so shit now. But most importantly, this argument is the one that Google wants us to have, and it is bullshit.
The schools are not, in general, making a moral objection to AI. They are making a practical one, where they do not want the students exposed to a chatbot while a human is trying to teach them something sans hallucination. Having a discussion about whether the traditional search results have any AI in them is fundamentally disingenuous, which is why I am 0% surprised to see you engaging in it.