Not much use in campaigns because campaigns are all about sieges - you don't need to know any tricks to beat sieges in TW games because the AI is uniformly appalling in them (Rome 2 gets a lot of very well-deserved flak for having an especially bad implementation, but TW siege AI is so atrocious across the board that in Empire and every subsequent game the developers have added workarounds designed to help the AI, such as grappling hooks).
Crusader Kings II barely has an AI - everything is handled through scripted decision-making; the system sets limits on units that can be raised, does the fighting automatically, sets terms for declaring war and forces peace when a certain condition is met. The AI only really has control of (a) where to move units, (b) when to merge units and which characters to set as generals, (c) knowing when it would be a good idea to quit (say, if its armies are all gone and the only territories it can raise from have enemy forces, but the warscore is still below 100%), and (d) - as you note - hiring mercenaries.
The AI is nothing short of atrocious at every one of these. It sends armies to pointless places and can easily be stalled just by sending something of your own towards its province, it engages with tiny armies instead of merging stacks and isn't capable of raising new armies as they become available (a patch in development will supposedly fix the latter), it rarely hires or effectively uses mercenaries, takes no account of the fact that the player can hire mercenaries, and it's as bad as Civ games if not worse at surrendering a lost war if the warscore is anything below 90%, and will often hold out at 99%. CK II is the fantastic game it is largely because it gives the AI so little scope to screw up by railroading its decision-making. If it had anything like the freedom of Civ V's AI decision-making, people would be decrying it in droves.
Nearly every strategy game with difficulty levels does this. The only exceptions I can think of are a few RTSes like Starcraft II, which are so deterministic in their play that the AI can be given a fixed script at a higher difficulty level, with better strategies hard-coded at different levels. This isn't a question of programming better AI, it's a matter of coding worse AI - the highest difficulty levels are the ones where the AI is programmed to build enough workers, attack at earlier times, and sit on fewer spare minerals, while lower levels are deliberately coded to play 'carelessly'.
It's basically like making Prince the highest difficulty in Civ V and reducing AI performance at every level below - instead of programming harder AIs with bonuses, you're programming easier AIs with handicaps. It's exactly the same basic design, however. And the strategies used at each level are highly stereotyped, always following the same build order, attacking at the same time with the same unit mix and so forth.