Yes, but I believe this is the intent. It's not a matter of it being good for the business when the CEO of said business intentionally wants it to fail.
SEO was/is a good thing because it made search a lot better for many years. The real problem are the individuals gaming/abusing the hell out of the system. Add AI content to the mix and I do fear it's a problem that can't be sorted out by Google Search, at least as how we know it now.
It still has its uses and I personally still turn to it (well DuckDuckGo usually) to find specific things. But like all things, it's one tool that serves a certain purpose.