It doesn't cheat. The AI uses the same TMA and sensor algorithms as the player and generally shoots only on an >85% solution. What happens when they ping you is the same that happens when you ping them - if above the detection threshold, the solution % climbs rapidly, then each successive ping maintains it.
Enemy subs can launch wireguided torpedoes as well, and they will resteer them providing they have a >85% solution on you and can track you, just like you can.
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