There's three basic paths for a company hit by this ruling to comply:
1. Stop showing users generated content.
2. Figure out how to generate the content with more quotes and attribution to source websites, to regain the protection offered to search engines.
3. Figure out the hallucination problem, so that every statement in machine generated content is true, or at least defensible.
If this ruling forces companies to put more money into #3, whereas now they're coasting on good enough, I'd say it was speeding up innovation.