Forza Motorsport 5 will be collecting data on how you, the player, races. Whether in the form of hot laps, drag racing, circuit or even mucking about while tuning your vehicle of choice - data will be uploaded into Microsoft's cloud system (A Bayesian neural network capable of learning and adapting based on new information). If you choose to overtake clean, tailgate, or choose to be cautious, this data will all be collected. What this means is that instead of static computer A.I. being used, you will effectively be racing against other players. This, according to Greenawalt, implies that no racing experience will be the same and that with every race there will be a new set of permutations and behaviors to randomize things.
The other question is what happens when you play offline. Whatever Driveatar data was downloaded in the previous session of Forza Motorsport 5 that was cached will be used until logoff, and once you reconnect new data will be downloaded.
Also seen in the video was a newly created track based on Prague. The car featured is the McLaren P1 and it shown to be competing with some Koenigsegg and Audi race cars on the same track. Greenawalt stated that Forza Motorsport 5 explained that not only was the game capable of playing on 1080p native resolution with a 60 second frame rate, but with the new graphics engine cars will now contain three layers of paint which allows not only clearer visuals but also the ability to show imperfections.
In conclusion, this contradicts what Microsoft has said about cloud processing improving performance. There are instead other possibilities such as improved A.I., better matching of skills and possibly even means of helping newcomers improve.