AIs are not magical, they just learn to put things together from what they were given.
Google being a "progressive" company would have of course trained it to walk on egg shells when someone questions a gender assumption that it makes. It's well within their corpus and culture.
I'd say, generally, if you say "I'm a he/him" then it will call you a "he/him" - to separate that into treating it as he / him in the grammatical sense just seems like a "basic grammar" module that would have to be bolted after someone is classified as male or female, nevermind non-binary types.
I wonder if all future AIs now have to dedicate some portion of their NN to grammar-and-gender rules to avoid upsetting modern sensibilities.
I kind of think that we need to steer AIs away from trying to talk like humans at all. We can develop a simple grammar and language that AIs share information with, something a little more efficient than English perhaps.
But then what value are we to extract? Not much of its not in our language..
Thankfully I just train all my AIs to talk in the second person ("YOU" etc.) So it's another way to avoid the problem, but still might have eggshells in the public sphere, so I don't really release