This feature is available right now in Analytics and Ads. It's called "Google Signals." The documentation is publicly available, although it's a little scattered between different product page. I'll summarize:
If the user is using Chrome, and is logged into their Google Account, then you can use that instead of cookies. This is used for pulling in demographic information, cross-domain tracking, and cross-device tracking (something even 3rd-party cookies can't do without fingerprinting!).
The Privacy Sandbox kills other channels that might be an identity signal. Meaning ones available to parties other than Google.
Even as an anti-Google zealot who disapproves of this, I'll admit there are some ancillary benefits. For one, I honestly do believe that Google intends to kill fingerprinting, because it's in their interest to do so. For another, Google does offer a setting "disable personalized advertising" which will centrally let you opt-out of this tracking.
But most people are surprised when they find out that things already work this way, which to me already puts it on ethically dubious foundations from a privacy perspective. And, of course, the monopoly issue.