In the Latest Google Webmaster Help Video, Matt Cutt explained about Auto Generated Content and whether it will affect the site.

He Clearly explained that, the site which has auto generated content and doesn’t have added value, then Google will take action for those sites.

The user submitted question:

What does Google do against sites that have a script that automatically picks up the search query and makes a page about it? Ex: you Google [risks of drinking caffeine], end up at a page: “we have no articles for DRINKING CAFFEINE” with lots of ads.
Walter, Leiden, Netherlands

Below is the video, where he explains about “AUTO GENERATED CONTENT”