Considering Kaz said one thing and vertical slices of gameplay before the State of Play showed the opposite...who, or what, do you believe is more likely considering they showed two completely different view points?
We don't know what work on AI they have done. I am not inclined to believe Kaz's word because he has, in recent history, had a habit of either outright lying or trying to use flowery descriptors...which fans take as the truth and then get mad when it doesn't turn out to be the case.
And the sound conundrum from GT5 up to Sport shows that they absolutely can, and have, ignored major aspects of the game that were problematic because they do not see it as a problem until it is too late, and they are forced to fix it.