We started by putting advertisements on existing content, then moved to social networking and social media, which was essentially an engine for crowdsourcing the production of greater amounts of content against which to show advertisements. Because money is up for grabs, producing content is now a significant business, and as such, technology is meeting the demand with a way to produce content that is cheaper than the money it can make.
The problem of moderating undesirable human-generated content was already starting to intrude into this business model, but now generative tools are also producing undesirable content faster than moderation can keep up. And at some point of saturation, people will become disinterested, and tools which could previously use algorithmic heuristics to determine which content is good vs bad will begin to become useless. The only way out I can see is something along the lines of human curation of human-generated content. But I'm not sure there is a business model there at the scale the industry demands.