Sounds like bad teaching here, in racing you don't make a move unless you are sure of your self, he was avoiding the car ahead of him way too early. You must be blind or something, but he encroached on the AI driving line, this is a race and there is no room for bad decisions such as this. Ideally a human player would have seen you and either backed off, or swerved. The AI in GT5 is dumb at points, but that was completely your fault.
You guys seems to think that the driver was not at fault he 100% was, he's trying to avoid a car ahead of him which was more than a few car lengths ahead of him(albeit no reason to, he wasn't fast enough to reach the car ahead anyway). This is a simple case of human driver causing the majority of contact between you and the AI, and therefore the AI doesn't give you room because of whatever weird lapse in programming. Fact is the human driver was ultimately wrong. In fact, why did the human player back off when he felt the contact? No he didn't why? Because he was thinking, why should I back off, he hit me. The problem with the AI is for some reason when your car goes into a spin, it's as if you are no longer present, they will ram into you continuously, that is a flaw in the AI sub routines that doesn't cater for a car spinning out and being left sideways on the road. AI tenacity isn't always high as it should be is another flaw, but the big problem is the human player who makes ill advised moves for no apparent reason. You should be just as aware of your surroundings as you claim you want the AI to be.