So, on the topic of scaling difficulty. I reran the race I posted earlier (GT500 iA race) but this time, I put SPORTS HARD on the car. So, three tire grades below the AI. As with the first race, It too all five laps to get to the podium and I passed for the lead midway through the last lap. So, despite increasing the difficulty for myself and running slower lap times, the AI scaled down to match. I can only assume that it also scales up automatically. SO, the problem that exists is not scaling difficulty (we have BOTH sliders and dynamic difficulty). The problem is that: 1 - They don't fight each other for position. 2 - It appears they are tuned to allow the user to win, barring calamity.