Hi Brad,
Here are three of the AI issues I've seen recently.
1 ) I think the range troops (archers and mages) should start moving backwards on the battlefield immediately. I don't think there is any distance penalty for range troops is there? I'm finding that they start moving backwards too late and my melee troops can kill them in one swing. If they had started moving backwards from the beginning, then they would have gotten one more shot at me before I killed them.
2 ) In every game I've played, there has been at least one enemy army that ends up on some random tile and stays there for the entire game never moving. What's up with that?
3) I was fighting Queen Procipinee. She had 132 hitpoints and a ton of magic at her disposal but instead of using it against me, she just continued to cast heal on herself after every time I hit her. The battle went something like this... hit her for 20, heal for 15, hit her for 20, heal for 15, hit her for 20, heal for 15... and so on until she was dead. She never once tried an offensive spell or melee attack.