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Just guessing, but the guidance is almost certainly handled remotely.

Which opens it up to being hacked... a smart enemy might cause bullets to veer away from him.

It's unlikely to be actively guided remotely. It's likely a small sensor package in the bullet itself. I imagine a simple passive guidance system akin to one of the early MANPADS (i.e., Redeye or Strela-2), but, using a laser designator instead of target radiated infrared.

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