GPL has AI?

That's right. They, being the sprites of the machines, run on some sort of "checkpoint" system that actually has them come to a complete stop when out of sight. That means if you go reverse any track while the CPU goes ahead, and turn back around, the AI would still be in your sight if you approach it. It is also passable (meaning, you can pass Iron Tiger and become any place) no matter how you explore the track. This will work in every course except Story courses. No matter where you go, the CPu will always be near you.

Looks like they really USE the checkpoint system. This made the game VERY unpopular among sme F-Zero fans and non-racing fans. Except for us! (Thank GOD!)

Now on to what will support my theory. *Ahem* The checkpoint system which we know the AI relies on, like I said, actually made the game easier to beat. If the CPU passes you on a FORKED COURSE, turn around and as soon as you went to a good distance, turn around, then you should notice the one(s) who passed you is(are) still in sight. This also means that they can switch roads if it's forked, which in real racing is impossible, illicit, uncomprehensible, and just plain cheating! I have also learned that unlike the other 3D (and cool) F-Zero Games, the CPU goes faster than which they normally do. In GP Legend-even on expert- they go way slower than what they normally go. EX: Fire Stingray's normal top speed at 100% is around 1040. In a race against it, it's speeds drop to about less than half. This will be observed heavily.

A similar thing happened to me. I was on expert on big blue slip highway, I did the shortcut and it still showed the "mark" thing even though it took the shortcut. I think the AI follows you everywhere you go. This also works on Sand Ocean Caterpillar 1 and 2. Does anyone know how i can make an F-Zero Avatar?

Welcome Parrotman! There is a guide to getting your own F-Zero avatar just here on the general forum.