The other cars you compete against in RR3 - referred to as robots, or simply bots - are controlled by the app itself. The performance of bots is modified by the app, by making them faster or slower, to make the game as challenging as possible (without being impossible) for a wide variety of player skill levels. If you win consistently, especially by large margins, the bots will get faster and faster. Or if you lose repeatedly, the bots will become slower.
The expression "dumbing down the bots" refers to the process of losing an event over and over to make it easier to win. This process usually affects other events within a Series (or RR3 special Challenge), allowing you to pick an event of short duration (like an Elimination event, for example), to slow down the bots for other events in the same Series.