I think this is looking back with rose tinted glasses a bit mate. The GT franchise has had godawful AI for as long as I can remember.
I'll give GT1 and GT2 a pass as they were literally on PS1, but 3 was only competitive because it had insane rubberbanding. GT4 had AI that followed one line and would actively punt you out the way because they couldn't detect the player. I don't remember GT5 but I doubt it's dissimilar to GT6, which had AI that would brake 150m before the braking point and actively let the player win because of the reverse rubberbanding (I remember
@Samus doing a writeup/experiment regarding this, actually!).
GT Sport I'm pretty sure was the exact same as GT6, I remember the same braking issues making the career a joke. Whilst GT7 does certainly have abhorrent AI, it is
marginally better than what previous entries offer, if not simply due to the fact they actually mostly brake where they should. They're probably slightly better than GT4 AI, which is what I think the peak is (in terms of competitiveness at least) - but of course that peak is more like a mound in the grand scheme of things.