It's possible to believe that the sensors/AI failed (no braking) while also acknowledging that the vehicle/driver is not at fault for the death. I suspect that may ultimately be the case here.
Or, it was dark, your (night) vision isn't the best - but passes the drivers test, or you were tired.
The driving-exam manual I had to read before getting my license was mentioning this exact scenario, i.e. if one sees kids playing on the sidewalk close to the road that the driver should slow down. It was even included among the questions given at the written exam itself.
But, then again, the authorities over here in Europe are more attentive when handing out driving licenses to people who are about to handle 2-ton pieces of metal inside populated areas. In this case it seems like the "US driving mentality" (only the driver counts, damn be the pedestrians) has also affected the actual engineers who have programmed these "AI" cars.
I found this based on the photo of the accident location in this article [2]. I went to Tempe, AZ on Google Maps, entered the name of the building in the background of the photo ("First Solar"), and from there it was pretty easy to find the photo location. Then it was just a matter of going backward until the speed limit sign for that road in that direction was found.
[1] https://www.google.com/maps/@33.4350531,-111.941492,3a,75y,3...
[2] https://www.reuters.com/article/us-autos-selfdriving-uber/se...
edit: Also accidentally killing someone with your car because of minor speeding or inattentiveness usually results in a misdemeanor vehicular manslaughter charge. Who is getting that charge here?