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- MI
One of the problems with AI in AC is that we have so many modded additions in the race grids and the modders took no time to go through and set up the AI for the cars parameters. Worst part is that it may just be a copy and paste from another car and call it "good enough". The problem is that different cars steer locks and steer ratios affect the steer gain within the ai.ini. This is why you get some of the herky jerky lateral movement, especially when right in the AI's personal space. Instead of the AI making smooth steering adjustments, they make brash quick unrealistic movements of the steering wheel. You can see this if you let the AI take over your car, ctrl-c, and look if they're making crazy movements. There is a fine line of getting them to still make corners but cut down on ridiculous lateral movements. By adjusting things like look ahead and steer gain, you can try and make the AI play the best it can within AC's abilities.I may have done the same thing - I still think it's probably the worst AI out of the main games I play, but last night I did have some seriously fun races against AI.
One other thing that helps cut down on the AI pit manuevers is to change ULTRA_GRIP in ai.ini from 1.2 to just 1.0. This makes them a little more human and they then don't have the advantage of being more planted to spin you out (in most cases).
Of course if you can't get in and change the data, then this is a no go.