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Rubber band AI refers to a feature of artificial intelligence found in racing titles that is designed to prevent players from getting too far ahead of computer-controlled opponents. When done well, such AIs can maintain a consistent level of challenge from beginning of an event to the end.

In other words, no matter how good you drive, you will still lag behind/lead the opponent by a fixed distance. I tried doing my best in a race in NFS Carbon where I went through the best line during the turns, drove with the maximum speed possible, overtook the rival and the AI slingshot the opponent ahead of me leading him to fall off the canyon. Seems like the AIs are having hard times figuring themselves out 😂.