The AI is not all that bad and there have been quite a few improvements since the game was first released.
The biggest issue I have with the AI is that it does not choose among the various attack options as discussed here:
http://old.wargamer.com/forums/posts.asp?t=590768 and here:
http://old.wargamer.com/forums/posts.asp?t=590776 and here:
http://dogsofwarvu.com/forum/index.php/topic,2637.0.html in reply # 10. This essentially allows a human player to exploit the AI and inflict heavier casualties than the AI ever would when attacking at high odds.
One must decide to not choose the "capture hex" attack option when playing against the AI to balance the game, but this defeats the purpose of having it in the first place...unless playing a PBEM game where the human opponent would also have the same option.
IMO, the AI should either be patched to be able to choose the different attack options, or, and if this would be too difficult to implement, the combat results table should be redesigned to compensate for the possibility of being able to inflict higher casualties when attacking at high odds.
C