I wouldn't particularly blame your instructor, a lot of people would have reacted the same way, which to me proves that it's not just AI, it's the roads and the driving that are unsafe. As pedestrians, we learn what's dangerous and what we can't do, and as drivers, we assume pedestrians behavior from our own knowledge. But both AI and humans are subject to occasional 'irrational behavior'. Humans are not safe either in that situation. Even if in some cases a human might have advantage over AI, AI has many other advantages over humans. It would be a big mistake to reject AI just because there are situations where its performance can be inferior to some humans.

I agree there's still a lot of work to be done, but my point is that the problem is the driving system itself, and a lot of people dies because of it. AI can't directly change that, but if it can still do better than humans (in a few years), then it's worth it.