Does the driver graphic show you turning just as far when you drive it, or only when the AI is driving?
If it does the same for you it's a car physics issue (probably the steering ratio).
If it's only when the AI is driving then it's an ai.ini issue. I've never really messed with AI but I'm vaguely aware that there's a setting for how jerky the AI is with the steering. It might just be too spastic and need to be dialed down.
You can push CTRL-C to let the AI take over driving while you mess with the AI app in-game, to figure out what needs to be changed.