The stock AutoRide shocks have variable damping. Each one is independently electronically adjusted by the suspension controller based on input from the four position sensors at each corner, the steering wheel angle sensor, the wheel speed sensors, brake and throttle inputs, etc. Standard shocks are set how they are when designed and built to generally accommodate a range of driving conditions. There are two types of electronic shocks on these rigs. The bi-state ones change between two levels of damping using a variable internal valve. The other ones ("Magneride") alter the viscosity of the metallic fluid in the shock by varying the power of an electromagnet. It has much broader range of adjustment than the bi-state design. In the rear, on models with ALC (Automatic Leveling Control), the shocks also have an air bladder on them that's connected to a compressor. Using the position sensors attached to the rear upper control arms, the system detects when the rear is squatting and activates the compressor to inflate the air bladders on the shocks to lift the rear to it's intended position. I've heard that the higher-up models (Escalade) or maybe even higher trim levels (Denali?) had air bladders on the front shocks to alter the ride height.
That Arnott shock is basically a "standard" shock with no variable damping with an air bladder on it for the ALC. It has a resistor built into it so you can plug the electrical connection for the AutoRide into it. If you just unplug it from the original shock and install a non-electronic shock, the suspension computer will detect this and you'll have a "Service Suspension System" message constantly popping up on your DIC. When I lowered mine, I deleted the ALC and the AutoRide since there are no short shocks for this. I bought a $12 pack of resistors off Amazon and soldered them into the connectors to spoof the computer the same way the Arnott shocks do.