I've noticed that there are two major problems that cause the AI to be quite ineffective in Battlez:
The AI is completely incapable of handling environmental hazards, often walking straight into rolling boulders, spotlights, raising pyramidz etc. without a care in the world.
The AI always prioritizes attacking enemy gruntz in the vicinity over trying to take over forts, meaning that as soon as an AI-controlled grunt spots an enemy grunt nearby, they will drop everything in order to attack that grunt, even if they were inches away from capturing a fort.
I think that making at least the highest AI setting be capable of avoiding those pitfalls would allow the AI to become a force to be reckoned with.