In simple terms, the LIDAR sensor will allow you to do "If object at X, don't go to X". But obviously, you need more than that. Old school Kalman filters for object tracking etc.
Raw dog LIDAR and "old school kalman filters" don't give you anywhere near good enough performance.
Want to know how poor performance looks like in practice? Like Tesla phantom braking but ten times worse. And if you dial it down to avoid false positives, then it stops exerting any control over AI, and you're back to getting your AI to work well.
Yes, if we can get their error rate below 0.000001%. Until we get there, sensors + old school computer-vision provide safety.