In the base-game at least (usually playing at DG, usually on Std/Lg Arch/Cont maps), I see plenty of AI Destroyers. And though I can't be sure whether those are hand-builds or upgrades, I suspect the former, because the AIs still seem to be quite slow to go for the Ironclads tech.
That said, the time-window for the AI to build Destroyers (and Cruisers) is still relatively short, since they also usually go for Combustion, Flight, and then Mass Production, in succession. (RepParts is usually already known, because I've usually sold Electricity around after locking up SciMeth + ToE).
So while they will certainly start building Destroyers after Combustion, since Oil is the only required Resource (for all 3 ships), and the Battleship's A/D values are the highest of the three, it's not really surprising that they'd switch to building those instead, once they can.
If you want to see more AI Destroyers in-game, it might rather be preferable to limit the production of Battleships (and Cruisers?), e.g. make them auto produced (from an SWonder?), and or require more/other Resources or a specific Improvement(s) (if using Flintlock's patch), leaving the Destroyers (and Subs) as the 'best' options for hand-built ships in most coastal towns...?