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There's different types of Auto Aim.
Auto Aim: Lock on and Snap-to Targeting. Lock on is like GTA. Snap to is like Call of Duty. Snap targeting can be toggled on or off in Defiance and is always turned off in multiplayer.
Aim Assist: Sticky aim. Your reticle sticks to the target slightly, helping you keep them in your crosshairs. As far as I know, this can't be completely turned off.
Hitscan: From the moment the gun is fired, the game calculates whether the shot is a hit or a miss.
Bullet magnetism: Bullets bend slightly while traveling to the target. This is usually done to compensate for lag.
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AA is mostly based from console players or PC controller players. It is to compensate the inaccuracy of their block-based movements.
Blame them but I'm not saying dirty console peasants. (Oh wait, I did!) O_O
