I'd say if you have a relatively clean phone such as a Pixel or another one with minimal bloat, and install a ROM that comes with all the google apps and everything, then the benefit is probably fairly minimal.
But if you do a degoogled ROM then it's a huge difference. Stuff like GrapheneOS, CalyxOS, /e/OS.
Or if you have a phone with a ton of bloat and additional crap added like Samsung or the many Chinese brands, then even a ROM like LineageOS with google apps would be a big improvement in where data is getting sent.