Google isn't a startup, they aren't desperate to impress anyone. I don't even think they consider "AI" to be a product, which is probably correct. These AI enabled features are background processes that ideally integrate into products over time in ways that don't require you to explicitly know they're even there.

Given how widely used Google Docs is, for serious work, disrupting people's workflows is not a good thing. Google has no problem being second, they aren't going to die in the next three months just because people on Twitter say so.